Overview:
NZD/USD is consolidating after hitting two-month low of 0.8056 on Friday. The rate is undermined by positive USD sentiment. But Kiwi sentiment was boosted after New Zealand Finance Minister Bill English said on Sunday pressure on the Reserve Bank of New Zealand to increase the cash rate will grow if house prices continue rising at the "quite rapid rate" being seen. NZD/USD losses also tempered by NZD-USD yield gap. Daily chart is negative-biased as MACD is bearish; stochastics is staying suppressed at oversold; 5- and 15-day moving averages are falling.
Trading recommendations:
The pair is trading above its pivot point. It 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, trading in higher range is most favourable and buy position is recommended above its pivot with the first target at 0.8585 and the second target at 0.8642. You should keep in view short position below the pivot keep of the first target at 0.851, the breach of this target will move the pair downward further and expect the second target at 0.8458. The pivot point stands at 0.855.
Support levels:
S1 - 0.802
S2 - 0.796
S3 - 0.7909 (Sept. 5 reaction low).
Resistance levels:
R1 - 0.8176 (Friday's high)
R2 - 0.8215
R3 - 0.8271 (Thursday's high)