NZD/USD is expected to trade in a lower range. It is undermined by the weak commodity prices (CRB spot index closed down 1.97% at 215.16 Friday), kiwi sales on the buoyant EUR/NZD, GBP/NZD crosses. The NZD/USD losses are tempered by the softer dollar sentiment, receding investor risk aversion, and kiwi demand on the soft AUD/NZD cross.
The daily chart is mixed as the MACD is bullish, but stochastics is bearish at overbought levels.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.7455. A break of that target will move the pair further downwards to 0.7370. The pivot point stands at 0.7600. 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, a long position is recommended with the first target at 0.7675 and the second target at 0.7750.
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