NZD/USD is under pressure below 0.6920. Technically, the pair remains capped by its falling 50-period moving average and is likely to post new weaknesses. The relative strength index is below its neutrality area at 50 and lacks upward momentum. Furthermore, the previous key support at 0.6920 now acts as resistance, which should maintain the strong selling pressure. Therefore, as long as 0.6920 holds on the upside, look for further decline to 0.6840 and 0.6820 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 0.6840. A break of this target will move the pair further downwards to 0.6820. The pivot point stands at 0.6920. 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 0.6950 and the second target at 0.6975.
Resistance levels: 0.6950, 0.6975, 0.7015
Support levels: 0.6840, 0.6820, 0.6790
The material has been provided by InstaForex Company - www.instaforex.com