NZD/USD is expected to trade with a bearish bias. The pair has struck against its key resistance at 0.6770, and is now turning down. Meanwhile, the relative strength index is below its neutrality area at 50, and is displaying strong downside momentum. Besides, a bearish cross has been identified between the 20-period and 50-period moving averages. Further downside is therefore expected with the next horizontal support and overlap set at 0.6675 at first, and then 0.6650.
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 0.6675. A break of this target will move the pair further downwards to 0.6650. The pivot point stands at 0.6770. 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 0.6805 and the second target at 0.6840.
Resistance levels: 0.6805, 0.6840, 0.6890
Support levels: 0.6675, 0.6650, 0.6600
The material has been provided by InstaForex Company - www.instaforex.com