NZD/USD is expected to trade with a bullish bias above 0.6860. The pair posted a rebound from 0.6859 (the low of May 16). The 20-period moving average crossed above the 50-period one, which indicated a positive signal. The relative strength index is above its neutrality level at 50.
To conclude, as long as 0.6860 holds on the downside, expect a new upside to 0.6920 and even to 0.6950 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 0.6920 and the second one at 0.6950. In the alternative scenario, short positions are recommended with the first target at 0.6835 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6815. The pivot point is at 0.6860.
Resistance levels: 0.6920, 0.6950, and 0.6970
Support levels: 0.6835, 0.6815, and 0.6775
The material has been provided by InstaForex Company - www.instaforex.com