It is expected that NZD/USD extends its upside movement as the bias remains bullish. The pair remains positive on an intraday basis. A strong support base at 0.6770 (since June 1) has formed and allowed for a temporary stabilization. Besides, a bullish cross is identified between the 20-period and 50-period moving averages. Further upside is therefore expected with the next horizontal resistance set at 0.6850 at first and then at 0.6870.
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 0.690. In the alternative scenario, short positions are recommended with the first target at 0.6735 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 0.6705. The pivot point is at 0.6770.
Resistance levels: 0.6850, 0.69, 0.6950
Support levels: 0.6735, 0.6705, 0.6675
The material has been provided by InstaForex Company - www.instaforex.com