NZD/USD is expected to trade with a bearish bias as Key resistance at 0.6770. The pair failed to break above its horizontal resistance at 0.6770, and remains weak below the threshold. Even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be limited. As long as 0.6770 holds on the upside, the intraday outlook stays negative with targets at 0.6715 and 0.6690 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 0.6715. A break of this target will move the pair further downwards to 0.6690. The pivot point stands at 0.6770. 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 0.6805 and the second target at 0.6840.
Resistance levels: 0.6805, 0.6840, 0.6890
Support levels: 0.6715, 0.6690, 0.6650
The material has been provided by InstaForex Company - www.instaforex.com