FX.co ★ Technical analysis of NZD/USD for April 18, 2014

Overview:
NZD/USD is expected to trade in a lower range.As financial markets in New Zealand was shut today for Good Friday holiday and on Monday for Easter. NZD/USD is undermined by the positive dollar sentiment and continued impact from softer-than-expected New Zealand first-quarter CPI and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are also tempered by the Kiwi demand on NZD/JPY cross amid positive risk appetite and hawkish RBNZ monetary policy stance and positions adjustment before the weekend. Daily chart is negative-biased as MACD and stochastics are bearish.

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