Fundamental overview:
NZD/USD is expected to trade in a higher range. It is supported by the broadly weaker dollar undertone (ICE spot dollar index last 94.51 versus 94.70 early Monday) on profit-taking with long USD positions, firmer commodity prices, and Kiwi demand on soft AUD/NZD cross. But NZD/USD gains are tempered by the increased investor risk aversion.
Technical comment:
The daily chart is tilting positive as stochastics is rising from oversold levels, MACD staging bullish crossover against its exponential moving average.
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 0.7455 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 0.7325. A break of this target would push the pair further downwards, and one may expect the second target at 0.7280. The pivot point is at 0.7365.
Resistance levels:
0.7455
0.75
0.7530
Support levels:
0.7325
0.7280
0.7220
