Overview:

NZD/USD is expected to consolidate with bearish bias after hitting near-three-month low at 0.8437 on Monday.It is undermined by the broadly stronger USD undertone and soft commodity prices. But NZD/USD losses are tempered by the improved China economic outlook and Kiwi demand on retreating AUD/NZD cross, Kiwi demand on NZD/JPY cross amid positive risk appetite and NZD-USD interest differential. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15-day moving averages are 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 0.8430. A breach of this target will move the pair further downwards to 0.84. The pivot point stands at 0.8490. 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 0.8520 and the second target at 0.8550.

Resistance levels:
0.8520
0.8550
0.8570

Support levels:
0.8430
0.84
0.8365