It is expected the upside movement of NZD/USD will prevail. The pair is above its nearest support at 0.6770, and it is expected to post a new rise. Meanwhile, both the rising 20-period and 50-period moving averages are playing support roles. Last but not the least, the process of higher highs and lows remains intact. Hence, as long as 0.6770 is not broken down, further upside movement is expected with the next horizontal resistance and overlap set at 0.6870 at first, and then, at 0.690.
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 0.6870 and the second one at 0.690. In the alternative scenario, short positions are recommended with the first target at 0.6735 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 0.6705. The pivot point is at 0.6770.
Resistance levels: 0.6870, 0.69, 0.6950
Support levels: 0.6735, 0.6705, 0.6675
The material has been provided by InstaForex Company - www.instaforex.com