NZD/USD is under pressure at the moment. The pair fell below its previous key support of 0.6685 yesterday, and is likely to test 0.6605 (the low of December 3) in coming trading hours. Both the 20-period and 50-period moving averages are turning down, and act as resistance as well. Furthermore, the relative strength index is badly directed. To sum up, as long as 0.6685 holds on the upside, look for a new decline to 0.6605 and 0.6560.
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 0.6605. A break of that target will move the pair further downwards to 0.6565. The pivot point stands at 0.6685. 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 0.6730 and the second target at 0.6770.
Resistance levels: 0.6730 0.6770 0.6810
Support levels: 0.6605 0.6565 0.6515
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