Technical analysis of NZD/USD for Feburary 21, 2014

Overview:

NZD/USD is expected to trade in higher range. It is supported by the Kiwi demand on NZD/JPY cross amid reduced risk aversion and hawkish Reserve Bank of New Zealand's monetary policy stance. But NZD/USD gains are tempered by the positive dollar sentiment and official stance against strong Kiwi exchange rate and positions adjustment before weekend. Daily chart is mixed as stochastics is bearish, but MACD is still in bullish mode.

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 0.8315 and the second target at 0.8345. 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:
0.8315
0.8345
0.838

Support levels:
0.8205
0.818
0.816