FX.co ★ Technical analysis of NZD/USD for Feburary 24, 2014

Overview:

NZD/USD is expected to trade with risks skewed lower. It is undermined by subdued investor risk appetite, but NZD/USD losses are tempered by the weaker U.S. dollar sentiment and hawkish Reserve Bank of New Zealand's monetary policy stance and kiwi demand on soft AUD/NZD cross. Daily chart is mixed as MACD is in bullish mode, but stochastics is falling from the overbought zone.

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