NZD/USD is expected to trade in a lower range. It is undermined by the positive dollar sentiment, soft dairy prices, and the dovish monetary policy stance of the Reserve Bank of New Zealand. But NZD/USD losses are tempered by the diminished investor risk aversion and kiwi demand on the retreating AUD/NZD cross.
Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels. Five and 15-day moving averages are declining, although the inside-day-range pattern was completed on Friday.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6505. A break of that target will move the pair further downwards to 0.6465. The pivot point stands at 0.6625. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 0.6670 and the second target at 0.67.
Resistance levels: 0.6670 0.67 0.6750
Support levels: 0.6505 0.6465 0.64
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