Overview:
NZD/USD is trading in lower range. The rate is undermined by contagion from weak Aussie; concerns over economic slowdown in China. But NZD/USD downside is limited by rebounding commodity prices; weaker USD sentiment; Kiwi demand on soft AUD/NZD cross; caution ahead of Friday's U.S. July Non-Farm Payrolls jobs report. Kiwi is vulnerable to July CFLP and HSBC China manufacturing PMI data. Daily chart is mixed as MACD is in bullish mode, but stochastics is falling from overbought.
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 0.79 in view, breach of this target will move further the pair downward and you should expect the second target at 0.787. Pivot point stands at 0.8015. 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 0.805 and the second target at 0.81.
Support levels:
S1 - 0.79
S2 - 0.787
S3 - 0.78
Resistance levels:
R1 - 0.805
R2 - 0.81
R3 - 0.815