24.04.201418:00 Forex Analysis & Reviews: Technical analysis of NZD/USD for April 24, 2014

Overview:

NZD/USD is expected to trade with bullish bias. NZD/USD is supported after Reserve Bank of New Zealand raised rates by 25 basis points to 3.0% as expected and RBNZ Gov. Wheeler said "inflationary pressures are increasing and are expected to continue to do so over the next two years" as the economic expansion has "considerable momentum." NZD/USD is also supported by the Kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the concerns over China's economy and Kiwi sales on NZD/JPY cross amid waning investor risk appetite. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining, but stochastics is turning bullish.  

Trading recommendation: 
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8635 and the second target at 0.8690. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8515. A breach of this target will push the pair further downwards and one may expect the second target at 0.8475. The pivot point is at 0.8540.  

Resistance levels: 
0.8635
0.8690 
0.8750

Support levels:     
0.8515 
0.8475 
0.8435