Overview:

NZD/USD is expected to consolidate with a bearish bias after hitting a six-week low at 0.8556 this morning. Kiwi was hurt after the Reserve Bank of New Zealand signaled it would hold rates for now to assess the impact of increases and described the Kiwi's strength as "unjustified and unsustainable." NZD/USD is also weighed by the positive dollar sentiment and Kiwi sales on buoyant AUD/NZD cross. But the Kiwi sentiment is soothed by the larger-than-expected NZ June goods trade surplus. NZD/USD losses are also tempered by the NZD/USD interest differential and positions adjustment before the weekend. The daily chart is negative-biased as MACD is bearish, stochastics stays suppressed in the oversold zone, a five-day moving average is below 15-day MA and is declining.

Trading recommendations:
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. Short position is recommended with the first target at 0.8530. A break of this target will move the pair further downwards to 0.8490. The pivot point stands at 0.8635. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8665 and the second target at 0.8710.

Resistance levels:
0.8665
0.8710
0.8735

Support levels:
0.8530
0.8490
0.8475