NZD/USD is under pressure. The pair has accelerated on the downside, while the 20-period moving average has crossed below its 50-period one. Meanwhile, the relative strength index is below its oversold level at 30 and lacks upward momentum. Hence, as long as 0.7130 holds as the key resistance, the risk of a break below 0.7075 remains high.
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 0.7075. A break below this target will move the pair further downwards to 0.7050. The pivot point stands at 0.7130. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 0.7150 and the second one at 0.7175.
Resistance levels: 0.7150, 0.7175, 0.7245
Support levels: 0.7075, 0.7050, 0.7020
The material has been provided by InstaForex Company - www.instaforex.com