NZD/USD is expected to extend its upside movement that is supported by a rising trend line. The pair remains supported by a bullish trend line since Nov 28. The 20-period moving average stays above the 50-period one, and the relative strength index is above 50.
Thus, as long as 0.7100 is support, look for a further upside toward 0.7170 and even to 0.7200 as possible.
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 0.7170 and the second one at 0.7200. In the alternative scenario, short positions are recommended with the first target at 0.7075 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 0.7050. The pivot point lies at 0.7100.
Resistance levels: 0.7170, 0.7200, 0.7250
Support levels: 0.7075, 0.7050, 0.7000
The material has been provided by InstaForex Company - www.instaforex.com