Fundamental overview:
NZD/USD is expected to consolidate with bullish bias as markets await the U.S. non-farm payrolls report. Financial markets in New Zealand are shut owing to a public holiday. NZD/USD is supported by the broadly weaker dollar undertone and the kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion. But the NZD/USD gains are tempered by the positions adjustment ahead of weekend.
Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is rising from oversold levels; intraday-range pattern was completed on Thursday.
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 0.7450 and the second target at 0.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7280. A break of this target would push the pair further downwards, and one may expect the second target at 0.7220. The pivot point is at 0.7325.
Resistance levels:
0.7465
0.75
0.7550
Support levels:
0.7325
0.7280
0.7220
