Overview:
NZD/USD is expected to trade in a lower range. It is undermined by the subdued investor risk appetite and broadly firmer USD undertone. But NZD/USD losses are tempered by the NZD-USD interest differential. The daily chart is negative-biased as MACD is bearish, stochastics stays suppressed in the oversold zone, a five-day moving average is below a 15-day MA and is declining.
Trading recommendations:
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 0.8640. A break of this target will move the pair further downwards to 0.8620. The pivot point stands at 0.8685. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 0.8720 and the second target at 0.8745.
Resistance levels:
0.8720
0.8745
0.8785
Support levels:
0.8640
0.86
0.8575
