Overview:

NZD/USD is expected to trade in a higher range. It is undermined by the positive dollar sentiment and Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion. But NZD/USD losses are tempered by the improved economic outlook for China and hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at overbought zone.

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 0.8750 and the second target at 0.8780. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8635. A breach of this target would push the pair further downwards and one may expect the second target at 0.86. The pivot point is at 0.8655.

Resistance levels:
0.8750
0.8780
0.88

Support levels:
0.8635
0.86
0.8560