FX.co ★ Technical analysis of NZD/USD for Feburary 07, 2014

Overview:
NZD/USD is expected to consolidate with bullish bias as markets await U.S. non-farm payrolls report. NZD/USD is supported by Kiwi demand on NZD/JPY cross amid positive investor risk appetite, weaker dollar sentiment, hawkish Reserve Bank of New Zealand's monetary policy stance and firmer commodity prices. But NZD/USD gains are tempered by Kiwi sales on buoyant AUD/NZD cross and positions adjustment before weekend. Daily chart is positive-biased as stochastics is rising from oversold zone; negative MACD histogram bars are contracting.

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 0.828 and the second target at 0.834. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.818. A breach of this target will push the pair further downwards and one may expect the second target at 0.814. The pivot point is at 0.8215.

Resistance levels:
0.828
0.834
0.84
Support levels:
0.818
0.814
0.81