NZD/USD is under pressure. The pair remains on the downside, capped by its descending 50-period moving average. The formation of lower highs and lows is still intact and it should confirm a negative outlook. Besides, the relative strength index lacks upward momentum. Even though a technical rebound cannot be ruled out, its extent should be limited before further decline to 0.660 and 0.6560 in extension.
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 0.6600. A break of that target will move the pair further downwards to 0.6560. The pivot point stands at 0.6715. 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 0.6760 and the second target at 0.6790.
Resistance levels: 0.6760, 0.6790, 0.6830
Support levels: 0.660, 0.6560, 0.6525
The material has been provided by InstaForex Company - www.instaforex.com