Overview:

NZD/USD is expected to trade in a lower range. It is supported by the Kiwi demand on NZD/JPY cross amid reduced risk aversion, hawkish Reserve Bank of New Zealand's monetary policy stance, and NZD-USD interest differential. But NZD/USD upside move is limited by the Kiwi sales on rebounding AUD/NZD cross. The daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing, but stochastics is turning bearish in the overbought zone.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8735. A break of this target will move the pair further downwards to 0.8710. The pivot point stands at 0.88. In case the price moves in the opposite direction and bounces back from the support level, and then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8835 and the second target at 0.8860.

Resistance levels:
0.8835
0.8860
0.8890

Support levels:
0.8735
0.8710
0.8685