NZD/USD is expected to continue its bounce supported by the fundamental outlook. The pair has been well supported by a rising trend line, while the 20-period moving average remains above the 50-period one. The relative strength index stays above 50 and is positively oriented. Therefore, as long as 0.6960 holds as the key support, look for a bounce to 0.7035 and 0.7070.
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 0.7035 and the second one at 0.7070. In the alternative scenario, short positions are recommended with the first target at 0.6940 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 0.6925. The pivot point is at 0.6960.
Resistance levels: 0.7035, 0.7070, 0.7100
Support levels: 0.6940, 0.6925, 0.6885
The material has been provided by InstaForex Company - www.instaforex.com