FX.co ★ NZD/USD : under pressure

Overview:
The NZD/USD is to trade in lower range. The pair is undermined by inflamed investor risk aversiona and weaker commodity prices. But the NZD/USD losses are tempered by negative USD sentiment and the NZD-USD yield gap. Daily chart mixed as stochastics neutral; the MACD turning bearish.

Trading recommendation:
The pair is trading below its pivot point. It 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 0.843 in view, breach of this target will move further the pair downward and you should expect the second target at 0.8386. Pivot point stands at 0.8515. In case the price moves in opposite direction, 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 0.8545 and the second target at 0.8582-0.8585 .

Support levels:
S1 - 0.843
S2 - 0.84
S3 - 0.8386 (April 24 low)
Resistance levels:
R1 - 0.8545
R2 - 0.8582-0.8585 (Wednesday's high-Tuesday's high)
R3 - 0.8625