Overview:
NZD/USD is expected to trade in a range.The financial markets in New Zealand were shut today for Easter holiday. NZD/USD is undermined by the positive dollar sentiment and continued impact from softer-than-expected New Zealand first-quarter CPI. But NZD/USD downside is limited by the hawkish RBNZ monetary policy stance and Kiwi demand on NZD/JPY cross amid receding investor risk aversion. Daily chart is still negative-biased as MACD and stochastics are in bearish mode.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8650. A breach of this target will move the pair further downwards to 0.8690. The pivot point stands at 0.8610. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8545 and the second target at 0.8515.
Resistance levels:
0.8650
0.8690
0.8625
Support levels:
0.8545
0.8515
0.8475
