FX.co ★ Technical analysis of NZD/USD for March 10, 2014

Overview:

NZD/USD is expected to trade in higher range after hitting its four-and-a-half month high at 0.8522 on Friday. It is undermined by the concerns over economic slowdown in China, kiwi sales on NZD/JPY cross amid decreased investor risk appetite and positive U.S. dollar sentiment. But NZD/USD losses are tempered by the 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, 5- and 15-day moving averages are advancing but stochastics is turning bearish at overbought zone, bearish doji Shooting Star candlestick pattern was completed on Friday.

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 0.852 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 0.84. 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 0.843.

Resistance levels:
0.852
0.8545
0.8590

Support levels:

0.84

0.8370
0.8330