Overview:
NZD/USD is trading in lower ranges. It is undermined by improved dollar sentiment, weaker commodity prices, Kiwi sales in the buoyant AUD/NZD cross. But the NZD/USD downside is limited by diminished risk aversion. Daily chart is mixed as MACD is bearish, but stochastics is neutral, the five-day moving average is meandering sideways. The inside-day-range pattern was completed Wednesday.
Trading recommendation:
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. A short position is recommended with the first target at 0.82 in view; a breach of this target will move the pair further downwards to 0.815. The pivot point stands at 0.831. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 0.835 and the second target at 0.8385.
Support levels:
0.82
0.815
0.81
Resistance levels:
0.835
0.8385
0.8415
