Overview:
NZD/USD is expected to trade with bearish bias. It is undermined by the improved dollar sentiment and comment from RBNZ Gov. Wheeler that a high Kiwi exchange rate in face of weakening fundamentals may prompt RBNZ to intervene to sell NZD, lower dairy product prices, Kiwi sales on buoyant AUD/NZD cross and concerns over China's economy. But NZD/USD losses are tempered by the improved investor risk appetite and NZD-USD interest differential.Daily chart is mixed as MACD is bullish, but stochastics turned bearish at overbought zone.
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 0.8635. A breach of this target will move the pair further downwards to 0.8595. The pivot point stands at 0.8705. 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 at0.8780 and the second target at 0.8820.
Resistance levels:
0.8745
0.8780
0.8820
Support levels:
0.8630
0.8595
0.8550
