Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the kiwi sales on buoyant AUD/NZD cross, improved dollar sentiment, and soft dairy prices. But NZD/USD losses are tempered by the kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment and NZD-USD interest differential. The kiwi is vulnerable to 01:45 GMT HSBC China flash manufacturing PMI in April.
Technical comment:
The daily chart is mixed as the MACD is bullish but stochastics is bearish at overbought levels.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7530. A break of that target will move the pair further downwards to 0.7490. The pivot point stands at 0.7640. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7685 and the second target at 0.7740.
Resistance levels:
0.7685
0.7740
0.7790
Support levels:
0.7530
0.7490
0.7450
