Fundamental overview:
NZD/USD is expected to trade in a higher range. It is undermined by the weak Aussie, broadly firmer dollar undertone, and soft dairy prices. But NZD/USD losses are tempered by the kiwi demand on the soft AUD/NZD cross, positive risk sentiment, and the NZD-USD interest differential.
Technical comment:
The daily chart is mixed as the MACD is bullish; five-day moving average is above 15-day moving average and is advancing. Stochastics is turning bearish at overbought levels.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.7740 and the second target at 0.7790. In the alternative scenario, in case the price moves below its pivot points, short positions are recommended with the first target at 0.7620. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7575. The pivot point is at 0.7655.
Resistance levels:
0.7740
0.7790
0.7845
Support levels:
0.7620
0.7575
0.7545
