Overview:
The NZD/USD pair is expected to trade in lower range. It is undermined by the positive dollar sentiment and Kiwi sales on the NZD/JPY cross amid weaker investor risk appetite. But NZD/USD losses are tempered by the Kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary policy stance and slightly stronger-than-expected New Zealand 4Q GDP on-year growth of +3.1% (versus +3.0% forecast). Daily chart is mixed as the MACD is bullish, but stochastics is turning bearish at overbought zone.
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. Short position is recommended with the first target at 0.8480. A breach of this target will move the pair further downwards to 0.8430. The pivot point stands at 0.8595. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8640 and the second target at 0.8675.
Resistance levels:
0.8640
0.8675
0.87
Support levels:
0.8480
0.8430
0.84
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