Overview:
NZD/USD is expected to trade in a lower range. It is supported by the Kiwi demand on the retreating AUD/NZD cross and better-than-expected New Zealand 2Q terms of trade, NZD-USD interest differential , and positive investor risk appetite. But NZD/USD gains are tempered by the positive dollar sentiment, weak dairy prices and reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year. The daily chart is tilting positive as stochastics is in a bullish mode, MACD is turning bullish.
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 0.83. A break of this target will move the pair further downwards to 0.8270. The pivot point stands at 0.8380. 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 0.8435 and the second target at 0.8465.
Resistance levels:
0.8435
0.8465
0.8490
Support levels:
0.83
0.8270
0.8245
