NZD/USD is expected to trade with bullish bias. The pair managed to break above its previous key resistance at 0.6705, which should confirm a bullish reversal. The 20-period moving average also crossed above the 50-period one. Besides, the relative strength index is heading upward without displaying any reversal signal. To sum up, as long as 1.4620 is not broken, the price is likely advance to 0.6770 and 0.6805 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 0.6770 and the second one at 0.6805. In the alternative scenario, short positions are recommended with the first target at 0.6685 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 0.6670. The pivot point is at 0.6705.
Resistance levels: 0.6770, 0.6805, 0.6840
Support levels: 0.6685, 0.6670, 0.6645
The material has been provided by InstaForex Company - www.instaforex.com