NZD/USD is under pressure as it is capped by a negative trend line. The pair is heading downward now, and remains capped by its descending trend line. The relative strength index is mixed to bearish below its neutrality area at 50. Besides, the nearest resistance at 0.7000 maintains the strong selling pressure. Therefore, as long as 0.7000 is not surpassed, look for a return to 0.6935 and 0.6920 in extension.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6935. A break below this target will move the pair further downwards to 0.6920. The pivot point stands at 0.7000. In case the price moves in the opposite direction and bounces back from the support level, it will go above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7045 and the second one at 0.7080.
Resistance levels: 0.7045, 0.7080, 0.7150
Support levels: 0.6935, 0.6920, 0.6865
The material has been provided by InstaForex Company - www.instaforex.com