NZD/USD is expected to continue its downside movement. The pair remains on the downside, capped by its falling 20-period and 50-period moving averages. The relative strength index is also under pressure below its declining trendline. At the current stage, the pair is pulling back to challenge its nearest horizontal support at 0.6680. The risk is a slide below this key level, which would trigger a bearish acceleration toward 0.6670 and 0.6645 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 0.6670. A break of this target will move the pair further downwards to 0.6645. The pivot point stands at 0.6730. 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 0.6770 and the second target at 0.6805.
Resistance levels: 0.6770, 0.6805, 0.6840
Support levels: 0.6670, 0.6645, 0.66
The material has been provided by InstaForex Company - www.instaforex.com