NZD/USD is expected to trade in higher range as bias remains bullish. The pair stands firmly above its horizontal key support at 0.7255, and the downside potential should be limited by this level. The U.S. dollar dropped sharply after the release of jobs data, but recovered by the mid-day session, and closed slightly higher. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. In addition, the relative strength index is around its neutrality area at 50 and lacks downward momentum. To conclude, as long as 0.7255 is not broken, look for further advance to 0.7340. A break above this level would open the way to further upside toward the next resistance at 0.7380.
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 0.7340 and the second one at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7220 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 0.7200. The pivot point is at 0.7255.
Resistance levels: 0.7340, 0.7380, 0.7415
Support levels: 0.7220, 0.7200, 0.7160
The material has been provided by InstaForex Company - www.instaforex.com