Overview:
NZD/USD is expected to trade in lower range as traders are waiting for 21:45 GMT (10.45 am Tuesday NZ Time) New Zealand 4Q CPI. NZD/USD is undermined by the broadly stronger dollar undertone, Kiwi sales on soft NZD/JPY cross amid waning investor risk appetite and Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is negative-biased as stochastics is falling from overbought and positive MACD histogram bars are contracting.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.8225 in mind. A breach of this target will move the pair further downwards to 0.8195. The pivot point stands at 0.8315. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favourably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.8355 and the second target at 0.8385.
Resistance levels:
0.8355
0.8385
0.8425
Support levels:
0.8225
0.8195
0.8155