FX.co ★ Technical analysis of NZD/USD for March 25, 2014

Overview:
NZD/USD is expected to range-trade. It is supported by the weaker dollar sentiment, hawkish Reserve Bank of New Zealand's monetary policy stance and reduced concerns over China. But NZD/USD upside is limited by the kiwi sales on buoyant AUD/NZD cross. Daily chart is tilting bearish as stochastics is falling from overbought zone, MACD staging bearish crossover is against its exponential moving average.

Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.851. A breach of this target will move the pair further downwards to 0.8480. The pivot point stands at 0.8595. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.864 and the second target at 0.8680.

Resistance levels:
0.864
0.868
0.874

Support levels:
0.851
0.848
0.844