NZD/USD is expected to consolidate in lower range after hitting a six-day high of 0.7562 on Thursday. It is undermined by the expectations for interest rate cuts from the Reserve Bank of New Zealand in coming months and weak dairy prices. But kiwi sentiment is soothed by strong data on retail sales in New Zealand in Q1. NZD/USD losses are also tempered by the positive risk sentiment, NZD-USD interest differential, and kiwi demand on retreating AUD/NZD cross and positions adjustment ahead of the weekend.
The daily chart is mixed as stochastics is rising from oversold levels, but the MACD is still in bearish mode.
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 0.7405. A break of that target will move the pair further downwards to 0.7335. The pivot point stands at 0.7515. 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 0.7560 and the second target at 0.76.
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