Overview:
NZD/USD is expected to trade with the bullish bias. Kiwi sentiment is dented by the NZIER New Zealand quarterly survey of business opinion showing a drop in business confidence to +33% in 2Q from +51% in 1Q. NZD/USD is also weighed by the Kiwi sales on buoyant AUD/NZD cross and Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance and NZD-USD interest differential. The Daily chart is negative-biased as stochastics is falling from overbought, MACD histogram bars are turning negative.
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 0.8835 and the second target at 0.8835. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8710. A breach of this target would push the pair further downwards and one may expect the second target at 0.8680. The pivot point is at 0.8735.
Resistance levels:
0.8835
0.8860
0.8880
Support levels:
0.8710
0.8680
0.8650
