NZD/USD is expected to trade in a lower range as the key resistance is at 0.6745. Technically, the pair remains under pressure below its resistance at 0.6745. The falling 50-period moving average is also heading downward, which should continue to push the prices lower. In addition, the sequence of lower highs and lows remains intact, and the relative strength index favors a new decline. Hence, as long as the 0.6745 resistance holds, look for choppy price action with a bearish bias. Our next down targets are set at 0.6660 and 0.6625.
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 0.666. A break of this target will move the pair further downwards to 0.6625. The pivot point stands at 0.6745. 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 0.6790 and the second target at 0.6830.
Resistance levels: 0.6790, 0.6835, 0.6870
Support levels: 0.666, 0.6625, 0.66
The material has been provided by InstaForex Company - www.instaforex.com