NZD/USD is expected to rebound. The pair seems likely to be forming a strong support base around 0.6560, which is expected to limit any downward attempts. A technical rebound may take place in the coming trading hours as both the 20-period and 50-period moving averages are turning up, and the relative strength index is bullish above its 50 area. Hence, as long as 0.6560 holds on the downside, look for a new bounce to 0.6680 and 0.6725 in extension.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6680 and the second one at 0.6725. In the alternative scenario, short positions are recommended with the first target at 0.65 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6450. The pivot point is at 0.6450.
Resistance levels: 0.6680, 0.6725, 0.6765
Support levels: 0.65, 0.6450, 0.6410
The material has been provided by InstaForex Company - www.instaforex.com