NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair has reversed up and is likely to challenge the horizontal resistance at 0.7200 in sight. Meanwhile, a bullish cross has been identified between the 20-period and 50-period moving averages. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. To sum up, as long as 0.7030 holds on the downside, we are positive and expect a bounce to 0.7150 and 0.72 in extension.
Recommendation:
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 0.7150 and the second one at 0.72. In the alternative scenario, short positions are recommended with the first target at 0.6970 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 0.6930. The pivot point is at 0.703.
Resistance levels: 0.7150, 0.72, 0.7245
Support levels: 0.6970, 0.6930, 0.6815
The material has been provided by InstaForex Company - www.instaforex.com