Overview:
NZD/USD is expected to trade in a higher range. It is supported by the Kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and NZD-USD interest differential. But NZD/USD upside is limited by weak dairy prices and Kiwi sales on buoyant AUD/NZD cross. The daily chart is mixed as MACD is bearish but stochastics is bullish in the oversold zone, inside-day-range pattern was completed on Monday.
Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8560 and the second target at 0.8585. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8430. A break of this target would push the pair further downwards and one may expect the second target at 0.84. The pivot point is at 0.8460.
Resistance levels:
0.8560
0.8585
0.8620
Support levels:
0.8430
0.84
0.8375
