FX.co ★ NZD/USD: Downside

Overview:
NZD/USD is trading with risks skewed higher. the rate is supported by month-end positions adjustment. But NZD/USD gains tempered by increased risk aversion; soft commodity prices; Reserve Bank of New Zealand Gov. Wheeler saying the central bank is prepared to increase smoothing operations to limit gains in the Kiwi's strength, ruling out interest rate hikes any time soon. Daily chart is mixed as MACD is bearish, stochastics is staying suppressed at oversold; but bullish parabolic stop-and-reverse signal was hit at 0.8127 on Wednesday.

Trading recommendations:

The pair is trading below its pivot point. The pair 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 0.8005 in view, breach of this target will move further the pair downward and you should expect the second target at 0.796. Pivot point stands at 0.80855. In case the price moves in opposite direction and 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 0.811 and the second target at 0.814.

Support levels:
S1 - 0.8005
S2 - 0.796
S3 - 0.7935

Resistance levels:
R1 - 0.811
R2 - 0.814
R3 - 0.8185