Fundamental Overview:
NZD/USD is expected to trade in higher range. NZD sentiment is dented by the 7.3% drop in Fonterra's GDT Price Index at latest Global Dairy Trade auction. NZD/USD is also weighed by the Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and Kiwi sales on buoyant AUD/NZD cross and threat of central bank intervention to weaken the NZD. But NZD/USD downside is limited by the weaker USD sentiment.
Technical Comment:
Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, 5 and 15-day moving averages are falling.
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.7955 and the second target at 0.7990. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7765. A break of this target would push the pair further downwards and one may expect the second target at 0.7730. The pivot point is at 0.7815.
Resistance levels:
0.7955
0.7990
0.8035
Support levels:
0.7765
0.7730
0.77