FX.co ★ Technical analysis of NZD/USD for January 16, 2014

Overview:
NZD/USD is trading in lower range and expected to continue its downward movement. It is undermined by the positive dollar sentiment. But NZD/USD losses are tempered by Kiwi demand on NZD/JPY cross amid positive risk sentiment , Kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is mixed as MACD is bullish, five-day moving average is above 15-day MA and still advancing, but stochastics is turning bearish in overbought zone.В В 

Trading recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.8265 in mind. A breach of this target will move the pair further downwards to 0.824. The pivot point stands at 0.8385. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favourably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.8425 and the second target at 0.8445.

Resistance levels:
0.8425
0.8445
0.85

Support levels:
0.8265
0.824
0.8225