Fundamental overview:
NZD/USD is expected to trade with bearish bias after hitting a three-month high of 0.7744 on Wednesday. Kiwi sentiment is weak as the Reserve Bank of New Zealand held the interest rate at 3.5% as widely anticipated and left the door open for a possible rate decrease. Besides, Fonterra cut its forecast milk solid payout. NZD/USD is also weighed by kiwi sales on buoyant AUD/NZD cross, soft dairy prices, and subdued investor risk appetite. But NZD/USD losses are tempered by negative dollar sentiment.
Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastic is turning bearish near overbought levels.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7545. A break of that target will move the pair further downwards to 0.7490. The pivot point stands at 0.7665. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7700 and the second target at 0.7740.
0.77
0.7740
0.7785
Support levels:
0.7545
0.7490
0.7445
