Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting two-year low 0.7666 on Thursday. NZD/USD is undermined by the positive dollar sentiment, soft commodity prices and contagion from weak AUD on NZD. But NZD/USD losses are tempered by the positive risk sentiment and NZD-USD interest differential, Kiwi demand on soft AUD/NZD cross and positions adjustment before weekend.
Technical comment:
Daily chart is negative-biased as MACD indicator is bearish, slow stochastic measure stays suppressed at oversold levels, five-day moving average is below 15-day moving average 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 0.7645. A break of this target will move the pair further downwards to 0.7580. The pivot point stands at 0.7730. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 0.7760 and the second target at 0.7790.
Resistance levels:
0.7760
0.7790
0.7835
Support levels:
0.7645
0.7580
0.7845
