Overview:
NZD/USD is expected to consolidate with bullish bias after hitting one-week high at 0.8681 on Tuesday. It is underpinned by the improved investor risk appetite and broadly weaker dollar undertone, buoyant commodity prices, hawkish Reserve Bank of New Zealand's monetary policy stance and hopes of further stimulus in China. But NZD/USD gains are tempered by the kiwi sales on soft NZD/JPY cross amid positive yen sentiment. Daily chart is mixed as MACD is bearish, but stochastics is in bullish 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 0.8670 and the second target at 0.87. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8570. A breach of this target will push the pair further downwards and one may expect the second target at 0.8530. The pivot point is at 0.8625.
Resistance levels:
0.8675
0.87
0.8735
Support levels:
0.8570
0.8530
0.8510
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