Overview:
NZD/USD is expected to trade in higher range. It is supported by the Kiwi demand on the NZD/JPY cross amid reduced risk aversion, hawkish Reserve Bank of New Zealand's monetary policy stance, diminished concerns over China and weaker USD demand. The daily chart is mixed as MACD is staging bearish crossover against its exponential moving average, but five-day moving average is meandering sideways.
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 0.8640 and the second target at 0.8675. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8530. A breach of this target will push the pair further downwards and one may expect the second target at 0.85. The pivot point is at 0.8565.
Resistance levels:
0.864
0.8675
0.874
Support levels:
0.8530
0.85
0.848
