NZD/USD is expected to trade with bullish bias. The pair broke below its 20-period moving average but is still trading above its rising 50-period one which maintains the upside bias. The relative strength index is above its neutrality level at 50. Additionally, 0.7030 is playing a key support role which should limit the downside potential. As long as this key level is not broken, look for a technical rebound toward 0.7110. A break above this level would call for a further upside toward 0.7130.
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 0.7110 and the second one at 0.7130. In the alternative scenario, short positions are recommended with the first target at 0.7010 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6970. The pivot point lies at 0.7030.
Resistance levels: 0.7090, 0.7110, 0.7140
Support levels: 0.6950, 0.6920, 0.6885
The material has been provided by InstaForex Company - www.instaforex.com