Overview:
NZD/USD is consolidating with risks skewed lower after hitting one-week low 0.8224 on Friday. The rate is undermined by bullish dollar sentiment; Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses are tempered by strong economic data out of China; firmer commodity prices; Kiwi demand on NZD/JPY cross amid positive risk sentiment. Daily chart is negative-biased as MACD and stochastics are bearish.
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 0.822 in view; a breach of this target will move the pair further downwards to 0.819. 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, 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 0.8365 and the second target at 0.844.
Resistance levels:
0.8365
0.8415
0.844
Support levels:
0.822
0.819
0.8175
