Overview:

NZD/USD is expected to consolidate with bearish bias after hitting its near-five-month low of 0.8061 on Friday. Such dynamics is undermined by the contagion from turmoil in the emerging markets, the kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion, positive dollar sentiment and the kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five-day moving average is below 15-day MA and still declining.

Trading recommendation:

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. A short position is recommended with the first target at 0.806 in mind. A breach of this target will move the pair further downwards to 0.803. The pivot point stands at 0.8125. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, it is most favourably expected to move further to the upside. In that scenario, a long position is recommended with the first target at 0.818 and the second target at 0.8215.

Resistance levels:
0.818
0.8215
0.8245
Support levels:
0.806
0.803
0.8