Overview:
NZD/USD is expected to trade in a higher range with limited upside. It is undermined by the positive dollar sentiment, kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion, kiwi sales on buoyant AUD/NZD cross and 0.7% on-quarter drop in New Zealand 4Q producer input prices and 0.4% drop in output prices. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is negative-biased as stochastics is falling from overbought, positive MACD histogram bars are contracting, five-day moving average is declining.
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 0.831 and the second target at 0.833. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8205. A breach of this target will push the pair further downwards and one may expect the second target at 0.818. The pivot point is at 0.824.
Resistance levels:
0.831
0.833
0..835
Support levels:
0.8205
0.818
0.816