NZD/USD is expected to trade with bearish bias. It is supported by the improved risk sentiment and the kiwi demand on the soft AUD/NZD cross. But NZD/USD gains are tempered by the divergent monetary policy stances of the Reserve Bank of New Zealand and the US Federal Reserve, soft dairy prices, and positions adjustment ahead of the weekend.
The daily chart is positive-biased as the MACD and stochastics are bullish.
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 0.6675. A break of that target will move the pair further downwards to 0.6650. The pivot point stands at 0.6745. 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 mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 0.6780 and the second target at 0.6815.
Resistance levels: 0.6780 0.6815 0.6845
Support levels: 0.6675 0.6650 0.6615
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