19.09.201418:21 Forex Analysis & Reviews: Technical analysis of NZD/USD for Sep 19, 2014

Fundamental Overview:

NZD/USD is expected to trade in higher range.It is supported by the weaker dollar sentiment (ICE spot dollar index last at 84.25 versus 84.78 early Thursday) as larger-than-expected 14.4% on-month drop in U.S. housing starts to 956,000 in August (versus forecast minus 5.6%), 5.6% on-month drop in U.S. building permits to 998,000 in August (versus forecast minus 1.1%) and more-than-expected drop in Philadelphia Fed's index of general business activity to 22.5 in September from 28.0 in August (versus forecast 24.0) offset fewer-than-expected 280,000 U.S. jobless claims in week ended Sept. 13 (versus forecast 305,000), Kiwi demand on soft AUD/NZD cross and Kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment and profit-taking on long-USD positions as market participants trim risk exposure before weekend. 

Technical Comment:
Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, 5 and 15-day moving averages are falling.  

Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8160 and the second target at 0.82. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8075. A break of this target would push the pair further downwards and one may expect the second target at 0.8045. The pivot point is at 0.8110. 

Resistance levels:
0.8160
0.82
0.8240

Support levels:
0.8075
0.8045
0.8