NZD/USD is expected to continue its further upside movement. The pair has reversed up, and is now heading upward, backed by its rising 20-period and 50-period moving averages. A strong support base around 0.6710 has formed, allowing for a temporary stabilization. In addition, the relative strength index is bouncing off its neutrality area at 50, calling for a new rebound. Hence, as long as 0.6710 is not broken, look for further advance to 0.6790 and 0.6830 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. Therefore, long positions are recommended with the first target at 0.6790 and the second one at 0.6830. In the alternative scenario, short positions are recommended with the first target at 0.6665 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 0.6625. The pivot point is at 0.6710.
Resistance levels: 0.6790, 0.6835, 0.6870
Support levels: 0.666, 0.6625, 0.66
The material has been provided by InstaForex Company - www.instaforex.com