NZD/USD is expected to consolidate with a bearish bias. It is undermined by the positive USD sentiment, dovish Reserve Bank of New Zealand’s monetary policy stance, and weak dairy prices. But NZD/USD losses are tempered by the NZD-USD interest differential.
The daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is 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 0.7490. A break of that target will move the pair further downwards to 0.7435. The pivot point stands at 0.7585. 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 0.76635 and the second target at 0.7665.
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