FX.co ★ Technical analysis of NZD/USD for October 03, 2014

Fundamental Overview:

NZD/USD is expected to consolidate with bullish bias as markets await U.S. non-farm payrolls report. NZD/USD is supported by the broadly weaker USD undertone, Kiwi demand on retreating AUD/NZD cross. But NZD/USD gains are tempered by subdued investor risk appetite and threat of central bank intervention to weaken the NZD and positions adjustment before weekend and broadly weaker USD undertone (ICE spot dollar index last 85.62 versus 85.91 early Thursday); subdued risk appetite (S&P 500 closed roughly flat at 1,946.17 overnight) as caution prevails before U.S. jobs report, while fewer-than-expected 287,000 U.S. jobless claims in week ended Sept. 27 (versus forecast 297,000) offsets bigger-than-expected 10.1% drop in U.S. August factory orders (versus forecast -9.3%). 

Technical Comment:
Daily chart is mixed as MACD is bearish, but stochastics is turned bullish at oversold zone.   

Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.7910 and the second target at 0.7955. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7765. A break of this target would push the pair further downwards and one may expect the second target at 0.7730. The pivot point is at 0.7815. 

Resistance levels:   
0.7910
0.7955 
0.7990

Support levels:
0.7765 
0.7730
0.77