NZD/USD is expected to trade in a higher range but the extent of the upside is limited. The pair is still moving sideways within the range between 0.6840 and 0.6950, and is likely to challenge the upper boundary in sight. The relative strength index is mixed to bullish, calling for a rebound. Besides, the 20-period and 50-period moving averages are on the upside. To sum up, as long as 0.6875 is not broken, look for a limited bounce to 0.6950 and 0.6975 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 0.6950 and the second one, at 0.6975. In the alternative scenario, short positions are recommended with the first target at 0.6840 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 0.6820. The pivot point is at 0.6875.
Resistance levels: 0.6950, 0.6975, 0.7015
Support levels: 0.6840, 0.6820, 0.6790
The material has been provided by InstaForex Company - www.instaforex.com