Overview:
NZD/USD is expected to trade in a higher range. It is supported by the negative U.S. dollar sentiment, positive investor risk appetite and buoyant commodity prices; hawkish Reserve Bank of New Zealand's monetary policy stance. But NZD/USD gains are tempered by the weaker-than-expected 1.2% on-quarter increase in New Zealand 4Q retail sales (versus +1.6% forecast) and kiwi sales on buoyant AUD/NZD cross. Daily chart is positive-biased as MACD and stochastics are bullish, although the latter one at an overbought zone, five-day moving average is above 15-day MA and is advancing.
Trading recommendation:
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 far as the price is above its pivot point, a long position is recommended with the first target at 0.84 and the second target at 0.843. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8295. A breach of this target will push the pair further downwards and one may expect the second target at 0.825. The pivot point is at 0.8325.
Resistance levels:
0.84
0.843
0.846
Support levels:
0.8295
0.825
0.823
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