NZD/USD is expected to trade in a higher range. The pair recorded higher tops and higher bottoms since May 19, which confirmed the bullish outlook. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index is mixed to bullish.
To conclude, as long as 0.6930 holds on the downside, look for a new rise to 0.7000 and even to 0.7015 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 0.7000 and the second one at 0.7015. In the alternative scenario, short position is recommended with the first target at 0.6915 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 0.6900. The pivot point is at 0.6930.
Resistance levels: 0.7000, 0.7015, and 0.7045
Support levels: 0.6915, 0.6900, and 0.6855
The material has been provided by InstaForex Company - www.instaforex.com