Overview:
NZD/USD is expected to consolidate. It is supported by the Reserve Bank of New Zealand's signal of more rate increases in coming months and the Kiwi demand on soft AUD/NZD cross and broadly weaker USD undertone. But NZD/USD upside is limited by the subdued risk appetite. Daily chart is still positive-biased as five-day moving average is above 15-day MA and is advancing, MACD and stochastics are bullish, although latter is at overbought.
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 0.8680 and the second target at 0.8710. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8565. A breach of this target will push the pair further downwards and one may expect the second target at 0.8525. The pivot point is at 0.8620.
Resistance levels:
0.8680
0.8710
0.8745
Support levels:
0.8565
0.8525
0.8475
