NZD/USD is expected to consolidate after hitting a two-week high 0.7974 on Monday. NZD/USD is undermined by the broadly stronger dollar undertone. But NZD sentiment is soothed by the stronger-than-expected 1.5% on-quarter growth in New Zealand 3Q retail sales (versus forecast +0.9%). NZD/USD downside is also limited by the Kiwi demand on soft AUD/NZD cross and NZD-USD interest differential.
Daily chart is still positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day moving average and is advancing.
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 0.8005 and the second target at 0.8050. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7830. A break of this target would push the pair further downwards and one may expect the second target at 0.7790. The pivot point is at 0.79.
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