Overview:
NZD/USD is expected to trade in lower range after hitting six-week high at 0.8736 on Thursday. It is undermined by the weaker-than-expected New Zealand 1Q quarter-on-quarter GDP growth,Kiwi sales on buoyant AUD/NZD cross and profit-taking on long-Kiwi positions before weekend. But NZD/USD losses are tempered by the negative dollar sentiment, positive risk appetite, buoyant commodity prices and hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, five and 15-day moving averages are advancing.
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 0.86. The pivot point stands at 0.8735. In case the price moves in the opposite direction and bounces back from the 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 at 0.8765 and the second target at 0.88.
Resistance levels:
0.8765
0.88
0.8845
Support levels:
0.8635
0.86
0.8560
