Overview:
NZD/USD is consolidating after hitting eight-day high of 0.8562 on Thursday. Kiwi sentiment is boosted by bigger-than-expected New Zealand March goods trade surplus of NZD718 million (vs. NZD373 million forecast). NZD/USD is also supported by positive investor risk appetite; firmer commodity prices; Kiwi demand on soft AUD/NZD cross and on buoyant NZD/JPY as weak yen sentiment supports the Kiwi/yen cross; NZD-USD yield gap. But NZD/USD gains tempered by positive USD sentiment; positions adjustment before weekend. Daily chart is mixed as MACD is bearish, but stochastics is rising from oversold.
Trading recommendations:
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favorably to trade in higher range and buy position is recommended above its pivot with first target at 0.854 and second target at 0.8562 . You should keep in view short position below the pivot keep of the first target at 0.8458, breach of this target will move the pair downward further and expect the second target at 0.843. Pivot point stands at 0.849.
Resistance levels:
R1 - 0.854
R2 - 0.8562 (Thursday's high)
R3 - 0.85
Support levels:
S1 - 0.8458 (Thursday's low)
S2 - 0.843
S3 - 0.8386 (Wednesday's low)