NZD/USD is expected to trade with risks skewed higher. It is supported by weaker dollar sentiment and NZD-USD interest differential. But NZD/USD upside is limited by the dovish Reserve Bank of New Zealand's monetary stance, Kiwi sales are underpinned by the buoyant AUD/NZD cross, increased investor risk aversion, and lower dairy prices.
The daily chart is still negative-biased as the MACD and stochastics are bearish, five- and 15-day moving averages are declining although inside-day-range pattern was completed on Monday.
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 0.6940. A break of that target will move the pair further downwards to 0.690. The pivot point stands at 0.7030. 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 0.7080 and the second target at 0.7130.
Resistance levels: 0.7080 0.7130 0.7170
Support levels: 0.6940 0.69 0.9845
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