NZD/USD is expected to consolidate. It is undermined by the weaker-than-expected New Zealand Q1 GDP growth data, dovish Reserve Bank of New Zealand's monetary policy stance, improved USD sentiment, soft dairy prices, and kiwi sales on the buoyant AUD/NZD cross. But NZD/USD downside is limited by the positive investor risk sentiment and positions adjustment ahead of the weekend.
The daily chart is still negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels. Five and 15-day moving averages are declining.
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 0.68. A break of that target will move the pair further downwards to 0.6820. The pivot point stands at 0.6955. 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 0.6995 and the second target at 0.7030.
Resistance levels: 0.6995 0.7030 0.7080
Support levels: 0.6850 0.6820 0.68
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