Overview:

NZD/USD is expected to consolidate with bullish bias after hitting its eight-day high 0.8391 Thursday. It is supported by the weaker dollar sentiment, improved risk appetite, kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary policy stance. But NZD/USD gains are tempered by the concerns over economic slowdown in China and positions adjustment before weekend. Daily chart is positive-biased as MACD is in bullish mode, stochastics is turning bullish and five and 15-day moving averages are advancing.

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 0.843 and the second target at 0.846. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8350. A breach of this target will push the pair further downwards and one may expect the second target at 0.8330. The pivot point is at 0.8370.

Resistance levels:
0.843
0.846
0.849

Support levels:
0.8350
0.8330
0.8310