FX.co ★ Technical analysis of NZD/USD for April 4, 2014

Overview:

NZD/USD is expected to consolidate with bearish bias after hitting two-week low at 0.8511 on Thursday as markets await U.S. non-farm payrolls report. NZD/USD is undermined by the broadly stronger dollar undertone, diminished risk appetite, Kiwi sales on buoyant AUD/NZD cross and weak dairy prices. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance and hopes of further stimulus in China and positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish.  

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 0.8510. A breach of this target will move the pair further downwards to 0.8480. The pivot point stands at 0.8580. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8610 and the second target at 0.8630.

Resistance levels: 
0.8610 
0.8635 
0.8660

Support levels: 
0.8510 
0.8480 
0.8440