NZD/USD is expected to trade in a lower range. The pair accelerated on the downside yesterday, and it is also capped by its falling 50-period moving average. Even though the relative strength index is posting some bullish divergence, it has not been confirmed by the prices yet. Hence, as long as 0.6790 is not surpassed, a new decline is more likely to occur to 0.6690 and 0.6660 in extension.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6690. A break of that target will move the pair further downwards to 0.6660. The pivot point stands at 0.6790. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6820 and the second target at 0.6840.
Resistance levels: 0.6690, 0.6660, 0.6620Support levels: 0.6820, 0.6840, 0.6890
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