NZD/USD is expected to trade in a higher range, with a bullish bias above 0.6845. The pair is currently consolidating, but still holds above its key support area around 0.6840, representing both the current 50-period moving average and an intraday horizontal support. As long as this threshold is not broken, the pair is likely to post a new rebound after a pause. Furthermore, the process of higher highs and lows remains intact, which should confirm a bullish outlook. To sum up, above 0.6845, even though a continuation of the consolidation cannot be ruled out, its extent should be limited before a new rise to 0.6965 and 0.7030 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 0.6965 and the second one at 0.7030. In the alternative scenario, short positions are recommended with the first target at 0.6780 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 0.6725. The pivot point is at 0.6845.
Resistance levels: 0.6965, 0.7030, 0.7065
Support levels: 0.6780, 0.6725, 0.6695
The material has been provided by InstaForex Company - www.instaforex.com