Our first downside target which we predicted in yesterday's analysis has been hit. NZD/USD is under pressure. The pair retreated and broke below its 20-period and 50-period moving averages. In addition, the 20-period moving average is turning down. The relative strength index is heading downward.
To conclude, as long as 0.7335 is not surpassed, look for a new drop with targets at 0.7250 and 0.7215 in extension.
The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7360, 0.7395, and 0.7430.
Support levels: 0.7250, 0.7215, and 0.7180.
The material has been provided by InstaForex Company - www.instaforex.com