NZD/USD is expected to trade with bullish bias above 0.7265. The pair is consolidating but is still standing firmly above its horizontal support at 0.7265. Meanwhile, the 50-period moving average is heading upward and maintains the upside bias. In addition, the relative strength index lacks downward momentum. To conclude, as long as 0.7265 holds on the downside, we remain positive and expect a new rise to 0.7330 (Sep 27 top) at first. A break above this level would open the path to further advance toward 0.7350.
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 0.7330 and the second one at 0.7350. In the alternative scenario, short positions are recommended with the first target at 0.7245 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 0.7220. The pivot point lies at 0.7265.
Resistance levels: 0.7330, 0.7350, 0.7370
Support levels: 0.7245, 0.7220, 0.7200
The material has been provided by InstaForex Company - www.instaforex.com