Overview:

NZD/USD is expected to consolidate. It is supported by the Reserve Bank of New Zealand's signal of more rate increases in coming months , positive risk appetite and Kiwi demand on soft AUD/NZD cross. But NZD sentiment are dented by the drop in New Zealand Westpac McDermott Miller Consumer Confidence Index to 121.1 in 2Q from 121.7 in 1Q; a 1.2% on-month drop in Reinz House Price Index in May. NZD/USD upside is also limited by the positive dollar sentiment. Daily chart is still positive-biased as five-day moving average is above 15-day MA and is advancing, MACD and stochastics are bullish, although the latter is at overbought zone and inside-day-range pattern was completed on Friday.

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 0.8710 and the second target at 0.8745. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8565. A breach of this target will push the pair further downwards and one may expect the second target at 0.8525. The pivot point is at 0.8620.

Resistance levels:
0.8710
0.8745
0.8775

Support levels:
0.8565
0.8525
0.8475