Overview:
NZD/USD is consolidating with bearish bias after hitting one-year low of 0.7710 on Thursday. The rate is undermined by weak commodity prices; broadly strong demand for U.S. dollar; fears over China economic slowdown; weaker-than-expected New Zealand 1Q GDP growth. But NZD/USD losses are tempered by positions adjustment before weekend. Daily chart is negative-biased as stochastics is bearish, MACD staged bearish crossover against its exponential moving average, five-day moving average is below 15-day MA and falling.
Trading recommendation:
The pair is trading below its pivot point. The pair 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 0.768 in view, breach of this target will move further the pair downward and you should expect the second target at 0.765. Pivot point stands at 0.78. In case the price moves in opposite direction and 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 0.7855 and the second target at 0.79.
Support levels:
S1 - 0.768
S2 - 0.765
S3 - 0.762
Resistance levels:
R1 - 0.7855
R2 - 0.79
R3 - 0.7945