Overview:
NZD/USD is consolidating. The rate is underpinned by positive global risk sentiment; NZD-USD yield gap; stronger commodity prices. But NZD/USD gains tempered by improved dollar sentiment after U.S. Non-farm payrolls increased by more-than-expected 165,000 in April (vs. +148,000 forecast) and U.S. unemployment rate fell to 7.5% from 7.6% (vs. forecast for no change), reducing expectations that Federal Reserve would expand its bond-buying program anytime soon. Daily chart is mixed as MACD is flat, but stochastics is bullish.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8471 in view, breach of this target will move the pair further downward and you should expect the second target at 0.8453. Pivot point stands at 0.8535. In case the price moves in opposite direction, it returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.8549 and the second target at 0.8585.
Resistance levels:
R1 - 0.8549 (Friday's high)
R2 - 0.8585 (Tuesday's high)
R3 - 0.8642 (April 12 high)
Support levels:
S1 - 0.8471 (Friday's low)
S2 - 0.8453 (Thursday's low)
S3 - 0.8384 (55-day moving average)