NZD/USD is expected to trade in a higher range. It is underpinned by the broadly weaker dollar undertone and Kiwi demand on buoyant NZD/JPY cross amid weak yen sentiment and NZD-USD interest differential. But NZD/USD gains are tempered by the jawboning against NZD strength from RBNZ Gov. Wheeler in latest Financial Stability Report and Kiwi sales on buoyant AUD/NZD cross.
Daily chart tilting positive as bullish outside-day-range pattern completed Tuesday, MACD histogram bars turned positive and stochastics rising from oversold levels.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.7915 and the second target at 0.7945. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7790. A break of this target would push the pair further downwards and one may expect the second target at 0.7710. The pivot point is at 0.7830.
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