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

Overview:
NZD/USD is expected to consolidate with bullish bias after hitting near-two-month high at 0.8432 on Wednesday.It is Supported by the weaker dollar sentiment and Kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary policy stance. But NZD/USD gains are tempered by the concerns over economic slowdown in China. Daily chart is positive biased as MACD is bullish, stochastics stays elevated at overbought zone, five and 15 day moving averages are advancing.  

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 0.0.8510 and the second target at 0.8545. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8395. A breach of this target will push the pair further downwards and one may expect the second target at 0.8370. The pivot point is at 0.8430.

Resistance levels:
0.8510
0.8545
0.86

Support levels:  
0.8395
0.8370
0.8345