FX.co ★ NZD/USD: Bearish bias (Aug 15, 2013)

Overview:
NZD/USD is trading in lower range. The rate is supported by buoyant commodity prices; weaker dollar sentiment; receding worries over slowdown in Chinese economy; Kiwi demand on declining AUD/NZD cross. But NZD/USD gains are tempered by Kiwi sales on soft NZD/JPY amid negative risk sentiment. Daily chart is positive-biased as MACD is in bullish mode, stochastics is turning bullish, five-day moving average is above 15-day MA and advancing.

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 positions are recommended with the first target at 0.797 in view; a breach of this target will move the pair downwards further and you should expect the second target at 0.793. The pivot point stands at 0.805. In case the price moves in the opposite direction, returns from its support, and moves above its pivot point, then trading in a higher range is the most favorable and positions buying is recommended above its pivot with the first target at 0.81 and the second target at 0.8135.

Resistance levels:
R1 - 0.81
R2 - 0.8135
R3 - 0.817

Support levels:
S1 - 0.797
S2 - 0.793
S3 - 0.79