Overview:
NZD/USD is expected to trade in a lower range. It is undermined by the weak dairy prices and reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year, official stance against strong Kiwi exchange rate and broadly firmer dollar undertone. But NZD/USD losses are tempered by the positive investor risk sentiment and NZD-USD interest differential and Kiwi demand on soft AUD/NZD cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15-day moving averages are 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 0.8395. A break of this target will move the pair further downwards to 0.8375. The pivot point stands at 0.8460. 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 0.8485 and the second target at 0.8505.
Resistance levels:
0.8485
0.8505
0.8530
Support levels:
0.8395
0.8375
0.8350
