Overview:
NZD/USD is expected to range-trade. It is undermined by the Kiwi sales on NZD/JPY cross amid waning investor risk appetite. But NZD/USD downside is limited by the negative U.S. dollar sentiment, the Kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is still positive-biased as MACD and stochastics is in bullish mode, five-day moving average is above 15-day MA and is advancing.
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 0.834 and the second target at 0.836. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.825. A breach of this target will push the pair further downwards and one may expect the second target at 0.823. The pivot point is at 0.8275.
Resistance levels:
0.834
0.836
0.838
Support levels:
0.825
0.823
0.821
