Overview:
NZD/USD is expected to trade in higher range. Financial markets in New Zealand were shut Friday for holiday. NZD/USD is undermined by the Kiwi sales on NZD/JPY cross amid increased investor risk aversion and concerns over China's economy. But NZD/USD losses are tempered by the weaker USD sentiment, Kiwi demand on soft AUD/NZD cross, NZD-USD interest differential and positions adjustment before weekend. Daily chart is negative-biased as bearish outside-day-range pattern were completed on Thursday, MACD and stochastics are bearish.
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 0.8635 and the second target at 0.8690. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8515. A breach of this target will push the pair further downwards and one may expect the second target at 0.8475. The pivot point is at 0.8550.
Resistance levels:
0.8635
0.8690
0.8750
Support levels:
0.8515
0.8475
0.8435
