NZD/USD is expected to trade in a range. It is supported by the Kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment, NZD-USD interest differential and firmer commodity prices. However, NZD sentiment is dented by the 1.9-point drop in New Zealand Westpac McDermott Miller consumer confidence index to 116.7 in 4Q from 3Q. NZD/USD upside is also limited by the positive dollar sentiment and Kiwi sales on rebounding AUD/NZD cross.
Daily chart is mixed as MACD and stochastics are neutral.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.7685. A break of this target will move the pair further downward to 0.7660. The pivot point stands at 0.7765. 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. In that scenario, a long position is recommended with the first target at 0.7795 and the second target at 0.7835.
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