Overview:

NZD/USD is expected to range trade. It is supported by the negative dollar sentiment and hawkish Reserve Bank of New Zealand's monetary policy stance and NZD-USD interest differential. But NZD sentiment is dented by the drop in ANZ New Zealand business confidence in June. NZD/USD upside is also limited by the softer commodity prices, waning investor risk appetite and Kiwi sales on buoyant AUD/NZD cross. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, 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 0.88 and the second target at 0.8835. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.87. A breach of this target would push the pair further downwards and one may expect the second target at 0.8680. The pivot point is at 0.8740.

Resistance levels:
0.8800
0.8835
0.8860

Support levels:
0.87
0.8680
0.8655