FX.co ★ NZDUSD: Bullish Bias

Overview:
NZD/USD is set to consolidate with the bullish bias after hitting 6-month low of 0.8053 Wednesday. The pair is hurt by positive dollar sentiment, increased risk aversion, and weaker commodity prices. But NZD/USD losses tempered by NZD-USD yield gap. Kiwi is vulnerable to China's HSBC flash manufacturing PMI data for May. Daily chart is negatively biased as MACD is bearish, stochastics are staying suppressed in the oversold area, five- and 15-day moving averages are falling.

Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in the higher range as far as it remains above its pivot point. While 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 0.8585 and the second target at 0.8642. You should keep in view short position below the pivot keep of the first target at 0.851, the breach of this target will move the pair downward further and expect the second target at 0.8458. The pivot point stands at 0.855.

Support Levels:
S1 - 0.8000
S2 - 0.796
S3 - 0.7909 (Sep 5 reaction low)
Resistance Levels:
R1 - 0.811
R2 - 0.8175
R3 - 0.8205-0.8212 band (Wednesday's high-Tuesday's high)