Overview:

NZD/USD is expected to consolidate with bearish bias after hitting a three-week low at 0.8519 on Monday. It is undermined by the smaller-than-expected New Zealand March trade surplus of NZD920 million (versus NZD937 million forecast), Kiwi sales on buoyant AUD/NZD cross and concerns over China's economy and weaker commodity prices. But NZD/USD losses are tempered by the Kiwi demand on NZD/JPY cross amid reduced risk aversion and NZD-USD interest differential. Daily chart is negative-biased as MACD and stochastics are bearish, although the latter is at oversold zone, five-day moving average is below 15-day MA and is 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. Short position is recommended with the first target at 0.8635. A breach of this target will move the pair further downwards to 0.8690. The pivot point stands at 0.8590. 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 0.8475 and the second target at 0.8430.

Resistance levels:
0.8635
0.8690
0.8750

Support levels:
0.8475
0.843
0.84