Overview:
NZD/USD is expected to trade with bullish bias. It is undermined by the positive dollar sentiment, soft commodity prices and kiwi sales on weak NZD/JPY cross amid increased investor risk aversion and concerns over economic slowdown in China. But the kiwi sentiment is soothed by the larger-than-expected New Zealand January trade surplus of NZ$306 million (versus NZ$221 million forecast). NZD/USD losses are also tempered by the kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary-policy stance. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.
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 0.839 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 0.8240. A breach of this target will push the pair further downwards and one may expect the second target at 0.8205. The pivot point is at 0.828.
Resistance levels:
0.839
0.843
0.846
Support levels:
0.824
0.8205
0.8165
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