Overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a six-month low at 0.8289 on Tuesday. It is undermined by the positive dollar sentiment, weak dairy prices, and reduced expectations of a further rate hike from the Reserve Bank of New Zealand this year. But NZD/USD losses are tempered by NZD-USD interest differential. The daily chart is negative-biased as bearish outside-day-range pattern was completed on Tuesday, MACD & stochastics reversed to a bearish mode; five- & 15-day moving averages are declining.
Trading recommendations:
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 0.8270. A break of this target will move the pair further downwards to 0.8240. The pivot point stands at 0.8380. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 0.8435 and the second target at 0.8465.
Resistance levels:
0.8435
0.8465
0.8490
Support levels:
0.8270
0.8240
0.82
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