FX.co ★ Technical analysis of NZD/USD for Feburary 06, 2014

Overview:
NZD/USD is expected to range-trade. It is supported by NZD demand on soft AUD/NZD, EUR/NZD, GBP/NZD crosses and on buoyant NZD/CHF cross. But NZD/USD upside is limited by the positive U.S. dollar sentiment. Daily chart is positive-biased as stochastics is in bullish mode, MACD is turned to bullish.

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 0.8255 and the second target at 0.83. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.812. A breach of this target will push the pair further downwards and one may expect the second target at 0.804. The pivot point is at 0.818.

Resistance levels:
0.8255
0.83
0.8345
Support levels:
0.812
0.804
0.798