FX.co ★ NZD/USD: Bullish bias (December 18, 2013)

Overview:
NZD/USD is consolidating as markets await 19:00 GMT U.S. FOMC interest rate decision. Kiwi sentiment was dented by wider-than-expected New Zealand 3Q current account deficit of NZ$4.78 billion (versus forecast of NZ$4.2 billion deficit). NZD/USD is also undermined by Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion; contagion from weak Aussie; soft commodity prices. But NZD/USD downside is limited by hawkish Reserve Bank of New Zealand's monetary policy stance; Kiwi demand on weak AUD/NZD cross.

Overview:
Daily chart is positive-biased as MACD is bullish, stochastics is reverting to bullish 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 0.829 and the second target at 0.831. 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:
0.829
0.8335
0.8365

Support levels:
0.816
0.8115
0.8075