FX.co ★ NZD/USD: Consolidation

Overview:
NZD/USD is trading with bullish bias. The rate is underpinned by weaker USD sentiment; stronger commodity prices; NZD-USD yield gap; profit-taking on Kiwi-shorts ahead of Fed Chairman Bernanke's testimony before Congress on Wednesday; lingering effect from New Zealand Finance Minister Bill English's comment Sunday that pressure on the Reserve Bank of New Zealand to increase the cash rate will grow if house prices continue rising at the "quite rapid rate" being seen. Daily chart is mixed as MACD is bearish, but stochastics has turned bullish at oversold.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favourable and buy position is recommended above its pivot with the first target at 0.82 and the second target at 0.8255. You should keep in view short position below the pivot keep of the first target at 0.8105, the breach of this target will move the pair further downward and expect the second target at 0.8058. The pivot point stands at 0.814.

Resistance Levels:
R1 - 0.82
R2 - 0.8255
R3 - 0.8271 (Thursday's high)

Support Levels:
S1 - 0.8105
S2 - 0.8056-0.8048 band (Friday's low-Nov. 16 reaction low)
S3 - 0.8000