Overview:
NZD/USD is expected to trade in a higher range . NZD/USD is buoyed by the expectations that RBNZ will raise its cash rate by 25 bps to 3.25%. NZD/USD is also supported by the Kiwi demand on retreating AUD/NZD cross. But NZD/USD gains are tempered by the positive dollar sentiment and receding investor risk appetite. Daily chart is positive-biased as stochastics is rising from oversold zone, MACD is staging bullish crossover against its exponential moving average and five-day moving average is rising above 15-day MA.
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 0.8575 and the second target at 0.8605. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8475. A breach of this target will push the pair further downwards and one may expect the second target at 0.8445. The pivot point is at 0.8525.
Resistance levels:
0.8575
0.8605
0.8635
Support levels:
0.8475
0.8445
0.84
