Overview:
NZD/USD is in range-trade. The rate is supported by soft dollar sentiment; Kiwi demand on NZD/JPY cross amid positive investor risk appetite. But NZD/USD upside is limited by Kiwi sales on buoyant AUD/NZD cross; profit-taking on long-Kiwi positions ahead of tomorrow's U.S. September non-farm payrolls and unemployment report. Data focus: 02:00 GMT New Zealand September credit card statistics. Daily chart is still positive-biased as five-day moving average is above 15-day MA and advancing; MACD and stochastics are bullish, although latter is at overbought, inside-day-range pattern was completed on Friday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.852 and the second target at 0.8555. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8395. The breach of this target will move the pair further downwards and one may expect the second target at 0.834. The pivot point stands at 0.844.
Support levels:
0.8395
0.834
0.83
Resistance levels:
0.852
0.8555
0.859