Overview:
NZD/USD is trading with bearish bias. It is undermined by positive dollar sentiment; Kiwi sales in soft NZD/JPY cross amid receding investor risk appetite; weak commodity prices; concerns over tepid China economic outlook. But NZD/USD losses are tempered by Kiwi demand in soft AUD/NZD cross; caution ahead of Friday's U.S. December non-farm payroll report. Daily chart is mixed as MACD is bullish, the five-day moving average is above 15-day MA and advancing; but stochastics turning bearish in the overbought zone, bearish outside-day-range pattern was completed Wednesday.В
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8285 and the second target at 0.832 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8195. The breach of this target will move the pair further downwards and one may expect the second target at 0.817. The pivot point stands at 0.824.
Resistance levels:
0.8285
0.832
0.8345
Support levels:
0.8195
0.817
0.8135
