Fundamental overview:
NZD/USD is expected to consolidate with bullish bias after hitting a seven-day high of 0.7740 on Tuesday as markets wait for the Reserve Bank of New Zealand monetary policy decision that is due at 21:00 GMT. The Wall Street Journal's poll of 12 economists sees a 96% chance that the central bank will keep the cash rate on hold. NZD/USD is supported by the negative dollar sentiment and kiwi demand on the buoyant NZD/JPY cross amid reduced risk aversion and the larger-than-expected New Zealand goods trade surplus of NZ$631 million (versus forecast NZ$344 million) for March. But NZD/USD gains are tempered by kiwi sales on the buoyant AUD/NZD cross and soft dairy prices.
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.7735 and the second target at 0.7770. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7615. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7590. The pivot point is at 0.7645.
Resistance levels:
0.7735
0.7770
0.78
Support levels:
0.7615
0.7590
0.7540
