Overview:
NZD/USD is expected to consolidate with bullish bias after hitting a four-month high of 0.8502 on Thursday as markets await U.S. nonfarm payrolls report. NZD/USD is supported by Kiwi demand on NZD/JPY cross amid positive investor risk sentiment, weaker dollar sentiment, hawkish Reserve Bank of New Zealand's monetary policy stance and firmer commodity prices. But NZD/USD gains are tempered by the Kiwi sales on buoyant AUD/NZD cross, concerns over economic slowdown in China and positions adjustment before weekend. Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, five and 15-day moving averages are 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 0.85450 and the second target at 0.8590. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8430. A breach of this target will push the pair further downwards and one may expect the second target at 0.8395. The pivot point is at 0.8465.
Resistance levels:
0.8545
0.8590
0.8635
Support levels:
0.8430
0.8395
0.8370
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