Overview:

NZD/USD is expected to range-trade. It is undermined by the kiwi sales on soft NZD/JPY cross amid increased investor risk aversion. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance and kiwi demand on retreating AUD/NZD cross, negative dollar sentiment, hopes of further monetary easing in China and New Zealand 1Q NZIER quarterly survey showing business confidence held steady in the first quarter - a net 52% of firms expect business conditions to improve over the next six months and remain at the highest level since mid-1994. Daily chart is mixed as 5-day moving average is falling below 15-day MA, MACD is bearish but stochastics is turning bullish.

Trading recommendation:
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 far as the price is above its pivot point, a long position is recommended with the first target at 0.8670 and the second target at 0.87. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8570. A breach of this target will push the pair further downwards and one may expect the second target at 0.8530. The pivot point is at 0.8610.

Resistance levels:
0.8675
0.87
0.8735

Support levels:
0.8570
0.8530
0.8510