Overview:
NZD/USD is expected to consolidate with bearish bias as markets await the Federal Reserve interest rate announcement. NZD/USD is undermined by the positive USD sentiment. But NZD/USD losses are tempered by the improved investor risk appetite, hawkish Reserve Bank of New Zealand's monetary policy stance and Kiwi demand on soft AUD/NZD cross. Daily chart is mixed as MACD is bullish, five-day moving average is above 15-day MA and is advancing, but stochastics is turning bearish at overbought zone.
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 0.87 and the second target at 0.8745. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.86. A breach of this target will push the pair further downwards and one may expect the second target at 0.8560. The pivot point is at 0.8635.
Resistance levels:
0.87
0.8745
0.8780
Support levels:
0.86
0.8560
0.85
