NZD/USD is expected to continue its upside movement. The pair stands firmly above its horizontal support at 0.7350 and is likely to challenge the nearest resistance at 0.7445 in sight. The rising 50-period moving average is playing a support role, and should limit the downward attempts. In addition, the relative strength index is still above its neutrality area at 50. Therefore, as long as 0.7350 holds as support, look for a new rise to 0.7445 and 0.7500 in extension.
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 0.7445 and the second one at 0.7500. In the alternative scenario, short positions are recommended with the first target at 0.7300 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 0.7255. The pivot point is at 0.7350.
Resistance levels: 0.7445, 0.7500, 0.7560
Support levels: 0.7300, 0.7255, 0.7200
The material has been provided by InstaForex Company - www.instaforex.com