NZD/USD is expected to trade with a bearish outlook. The pair is capped by a bearish trend line since 21 July, which confirms a negative outlook. The relative strength index is also capped by a declining trend line since 20 July. The upside potential should be limited by the key resistance at 0.7460 (the high of July 21).
Therefore, as long as this key level is not surpassed, expect a return to 0.7390 and 0.7360 in extension.
Strategy: SELL Stop Loss: 0.7460 Take Profit: 0.7390
Chart Explanation:
The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.750, 0.7530, and 0.7565
Support levels: 0.7390, 0.7360, and 0.7330
The material has been provided by InstaForex Company - www.instaforex.com