NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair stands firmly above its nearest support at 0.6775 and is likely to post a new bounce. The relative strength index is above its neutrality area at 50 and is also turning up. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6850 at first. A break above this level would call for further advance toward 0.6890.
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 0.6850 and the second one, at 0.6890. In the alternative scenario, short positions are recommended with the first target at 0.6740 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 0.6710. The pivot point is at 0.6775.
Resistance levels: 0.6850, 0.6890, 0.6920
Support levels: 0.6740, 0.6710, 0.6665
The material has been provided by InstaForex Company - www.instaforex.com