NZD/USD is expected to consolidate with a bearish bias after hitting a near-six-month low 0.8336 this morning. It is undermined by the positive dollar sentiment, waning investor risk appetite and weak dairy prices; reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year and Kiwi sales on the buoyant AUD/NZD cross. The daily chart is negative-biased as MACD and stochastics are bearish, although the latter is in the oversold zone, five and 15-day moving averages are declining.
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 0.8335. A break of this target will move the pair further downwards to 0.83. The pivot point stands at 0.8405. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 0.8435 and the second target at 0.8465.
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