FX.co ★ Technical analysis of NZD/USD for January 22, 2014

Overview:

NZD/USD is expected to trade with risks skewed higher. It is supported by stronger-than-expected New Zealand 4Q CPI, the hawkish Reserve Bank of New Zealand's monetary policy stance and Kiwi demand on soft AUD/NZD cross and broadly weaker dollar undertone. The daily chart is mixed as MACD is bullish, but stochastics is neutral.

Trading recommendation:

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 0.8335 and the second target at 0.839 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8225. A breach of this target will move the pair further downwards and one may expect the second target at 0.8195. The pivot point stands at 0.827.

Resistance levels:
0.8355
0.8385
0.8425
Support levels:

0.8225
0.8195
0.8155