NZD/USD is expected to trade with a bullish bias. The pair stands above both 20-period and 50-period moving averages and is continuing its rebound. And the relative strength index stays above 50. Further bounce is expected with 0.7150 and 0.72 as targets. However, if the pair turns down and breaks below 0.7055, it would open the way to further drop toward 0.7015 and 0.6980 in extension.
Recommendation:
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 0.7150 and the second one at 0.7200. In the alternative scenario, short positions are recommended with the first target at 0.7015 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 0.6980. The pivot point is at 0.7055.
Resistance levels: 0.7150, 0.72, 0.7245
Support levels: 0.7015, 0.6980, 0.6930
The material has been provided by InstaForex Company - www.instaforex.com