NZD/USD is expected to trade in a higher range. The pair posted a strong rebound yesterday, and also broke above its key technical level at 0.670. The previous key resistance acts as a support, which should prevent any downward attempts. Furthermore, the intraday 20-period and 50-period moving averages are turning up, calling for a new bounce. The relative strength index indicates that the bullish momentum is still strong. To sum up, as long as 0.670 is not broken down, look for further advance to 0.68 and 0.6835 in extension.
Trading recommendations:
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. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.68 and the second target at 0.6835. In the alternative scenario, short positions are recommended with the first target at 0.666 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6590. The pivot point is at 0.67.
Resistance levels: 0.68 0.6835 0.6875
Support levels: 0.6660 0.6590 0.6565
The material has been provided by InstaForex Company - www.instaforex.com