Overview:
NZD/USD is expected to trade in a higher range. It is supported by the weaker dollar sentiment, kiwi demand on NZD/JPY cross amid positive risk appetite, the hawkish monetary policy of the Reserve Bank of New Zealan and hope for further stimulus in China. Daily chart is positive-biased as MACD and stochastics are bullish, although the latter at overbought zone, five and fifteen-day moving averages are 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 0.87 and the second target at 0.8720. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8585. A breach of this target will push the pair further downwards and one may expect the second target at 0.855. The pivot point is at 0.8620.
Resistance levels:
0.87
0.8720
0.8750
Support levels:
0.8585
0.8550
0.8515
