Overview:

NZD/USD is expected to consolidate after hitting a seven-day low at 0.8576 on Wednesday. It is supported by the Kiwi demand on NZD/JPY cross amid positive risk appetite and hawkish RBNZ monetary policy stance. But NZD/USD gains are tempered by the positive dollar sentiment and lower-than-expected New Zealand 1Q CPI and Kiwi sales on buoyant AUD/NZD cross. Daily chart is still negative-biased as MACD and stochastics is in bearish mode.

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. Short position is recommended with the first target at 0.8570. A breach of this target will move the pair further downwards to 0.8545. The pivot point stands at 0.8630. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8660 and the second target at 0.8690.

Resistance levels:
0.8660
0.8690
0.8625

Support levels:
0.8570
0.8545
0.85