FX.co ★ NZD/USD: Bearish outlook (December 19, 2013)

OvervieW:
NZD/USD is trading with bearish bias. The rate is undermined by bullish dollar sentiment. But Kiwi sentiment soothed by stronger-than-expected 1.4% on-quarter growth in New Zealand 3Q GDP (versus +1.1% forecast). NZD/USD losses are also tempered by Kiwi demand on NZD/JPY cross amid positive risk sentiment. Daily chart is negative-biased as stochastics is bearish, positive MACD histogram bars are contracting.

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 0.814 and the second target at 0.8115. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8235 The breach of this target will move the pair further downwards and one may expect the second target at 0.8265. The pivot point stands at 0.82.

Resistance levels:
0.8235
0.8265
0.8335

Support levels:
0.814
0.8115
0.8075