Overview:
NZD/USD is expected to trade in a higher range. It is undermined by the Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion, concerns over economic slowdown in China and soft commodity prices. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance, weaker dollar sentiment and rise in Westpac McDermott Miller Consumer Confidence index to 121.7 in March – its highest since March 2005 from 120.1 in the December survey. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, five and 15 day moving averages 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 0.8605 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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