Overview:
The NZD/USD is expected to consolidate with bullish bias after hitting one-year high at 0.8606 on Thursday. It is undermined by the Kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion, positive dollar sentiment and concerns over economic slowdown in China and weak commodity prices. But the NZD/USD losses are tempered by the hawkish monetary policy stance of the Reserve Bank of New Zealand and positions' adjustment before weekend. The daily chart is still positive-biased as the MACD is bullish; stochastics stays elevated at overbought zone; five and 15-day moving averages are 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 0.8605 and the second target at 0.8650. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8490. A breach of this target will push the pair further downwards and one may expect the second target at 0.8430. The pivot point is at 0.8515.
Resistance levels:
0.8605
0.8650
0.870
Support levels:
08490
0.8430
0.84
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