NZD/USD is expected to trade with a bearish bias. The pair broke below its previous key support at 0.6550 and accelerated on the downside. The declining 50-period moving average suggests that the pair still has potential for a further decline. The relative strength index is around its neutrality area of 50%. As long as 0.6550 holds on the downside, the pair is likely to test its previous low of 0.6490. A breakout below this level would call for a a further drop towards 0.6460.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6490. A break of that target will move the pair further downwards to 0.6460. The pivot point stands at 0.6550. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6580 and the second target at 0.6605.
Resistance levels: 0.6580 0.6605 0.6625 Support levels: 0.6490 0.6460 0.6430
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