NZD/USD is expected to continue its upside movement. The pair is in a solid uptrend, supported by its ascending 50-period moving average. The momentum indicator such as the relative strength index is still bullish, which should confirm a positive outlook. Furthermore, a strong support base around 0.6760 has formed, which is most likely to limit any downward attempts. Therefore, as long as 0.6760 is not broken, an advance to 0.6880 and 0.6925 in extension is likely.
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. Therefore, long positions are recommended with the first target at 0.6880 and the second one at 0.6925. In the alternative scenario, a short position is recommended with the first target at 0.6705 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 0.6660. The pivot point is at 0.6760.
Resistance levels: 0.6880, 0.6925, 0.6975
Support levels: 0.6705, 0.666, 0.6620
The material has been provided by InstaForex Company - www.instaforex.com