Overview:
NZD/USD is expected to trade with a bullish bias. NZD sentiment is boosted by the stronger-than-expected 1.2% increase in New Zealand 2Q retail sales versus forecast +1.0%). NZD/USD is also supported by the Kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and NZD-USD interest differential. But NZD/USD gains are tempered by the broadly firmer USD undertone, Kiwi sales on buoyant AUD/NZD cross, weak dairy prices, reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year and official stance against strong Kiwi exchange rate. The daily chart is mixed as MACD is bearish, but stochastics is turned bullish in the oversold zone.
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 0.8530 and the second target at 0.8560. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8415. A break of this target would push the pair further downwards and one may expect the second target at 0.8395. The pivot point is at 0.8460.
Resistance levels:
0.8530
0.8560
0.8595
Support levels:
0.8415
0.8395
0.8375
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