NZD/USD is expected to trade with a bearish bias. It is undermined by the positive US dollar sentiment, divergent monetary policy stances of the Reserve Bank of New Zealand and the US Federal Reserve, and lower dairy prices. But NZD/USD losses are tempered by improved investors’ risk appetite.
The daily chart is mixed as the MACD is bullish, but stochastics is turning bearish.
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 0.6590. A break of that target will move the pair further downwards to 0.6540. The pivot point stands at 0.6670. 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 0.67 and the second target at 0.6745.
Resistance levels: 0.67 0.6745 0.6790
Support levels: 0.6590 0.6540 0.65
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