NZD/USD is under pressure and expected to continue the downside movement. Despite the recent rebound from 0.7220 (the low of September 13), the pair is trading below its key resistance at 0.7265, which should limit the upside potential. The declining 50-period moving average is playing a resistance role. The relative strength index is below its neutrality level at 50.
To conclude, below 0.7265, look for a new drop with targets at 0.7170 and 0.7145 in extension.
The black line shows the pivot point. Currently, the price is above the pivot point, which indicates the bullish position. If it remains below the pivot point, it will indicate 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: 0.7290, 0.7305, and 0.7350
Support levels: 0.7170, 0.7145, and 0.7100
The material has been provided by InstaForex Company - www.instaforex.com