NZD/USD is expected to trade in a lower range as it is under pressure. Technically, the pair remains under pressure below its key resistance at 0.6925, and seems likely to test its next support at 0.6835. Both the 20-period and 50-period moving averages are turning down, which should confirm a bearish reversal. Furthermore, the relative strength index is badly directed, calling for a new pullback. To sum up, as long as 0.6925 is not surpassed, look for further downsides to 0.6835 and 0.6780 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 0.6835. A break of this target will move the pair further downwards to 0.6780. The pivot point stands at 0.6925. 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 0.6965 and the second target at 0.7030.
Resistance levels: 0.6965, 0.7030, 0.7065
Support levels: 0.6835, 0.6780, 0.6725
The material has been provided by InstaForex Company - www.instaforex.com