FX.co ★ Technical analysis of NZD/USD for October 07, 2014

Fundamental Overview:

NZD/USD is expected to trade in higher range.It is supported by the broadly weaker USD undertone. But NZD sentiment is dented by the New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion showing a seasonally adjusted net 20% of firms now expect business conditions to improve over the next six months, down from 32% in 2Q. NZD/USD gains are also tempered by the weak dairy prices, threat of central bank intervention to weaken the NZD, subdued investor risk appetite and Kiwi sales on buoyant AUD/NZD cross. 

Technical Comment: 
Daily chart is mixed as MACD is bearish but stochastics is turning bullish at oversold zone, bullish-piercing candlestick pattern was completed on Monday.  

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 0.7870 and the second target at 0.7910. 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 0.78. 

Resistance levels: 
0.7870
0.7910 
0.7955 

Support levels:
0.7765 
0.7730  
0.77