NZD/USD is expected to consolidate with a bearish bias. It is undermined by the dovish Reserve Bank of New Zealand monetary policy stance, lower dairy prices, kiwi sales on the buoyant AUD/NZD cross, and drop in the New Zealand Westpac McDermott Miller consumer confidence index to 113.0 in the Q2 from 117.4 in the Q1
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five and 15-day moving averages are declining although an inside-day-range pattern was completed on Friday.
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 0.6850. A break of that target will move the pair further downwards to 0.6820. The pivot point stands at 0.6930. 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 0.6965 and the second target at 0.6995.
Resistance levels: 0.6965 0.6995 0.7030
Support levels: 0.6850 0.6820 0.68
The material has been provided by InstaForex Company – www.instaforex.com