FX.co ★ NZD/USD: Bullish bias (December 17, 2013)

OvervieW:
NZD/USD is trading with bullish bias. The rate is supported by positive investor risk appetite; hawkish Reserve Bank of New Zealand's monetary policy stance; buoyant commodity prices; Kiwi demand on soft AUD/NZD cross. But NZD/USD upside is limited by caution ahead of Wednesday's FOMC decision. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.

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 far as the price is above its pivot point, a long position is recommended with the first target at 0.931 and the second target at 0.8335. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.816. The breach of this target will move the pair further downwards and one may expect the second target at 0.8115. The pivot point stands at 0.82.

Resistance levels:
0.831
0.8335
0.8365

Support levels:
0.816
0.8115
0.8075