Overview:
NZD/USD is expected to consolidate with the bullish bias after hitting the near-three-year high at 0.8829 on Wednesday. NZD/USD is supported by the ongoing impact from Fitch's upgrade of New Zealand's credit outlook to positive from stable, weaker dollar sentiment, Kiwi demand on NZD/JPY cross amid positive risk sentiment, Kiwi demand on soft AUD/NZD cross, hawkish Reserve Bank of New Zealand's monetary policy stance, and NZD-USD interest differential. The daily chart is positive-biased as MACD and stochastics are bullish; five and 15-day moving averages are advancing.
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 0.8860 and the second target at 0.8890. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8710. A break of this target would push the pair further downwards and one may expect the second target at 0.8680. The pivot point is at 0.8770.
Resistance levels:
0.8860
0.8890
0.8925
Support levels:
0.8735
0.8710
0.8680
