NZD/USD is expected to trade with a bullish outlook. The technical outlook of the pair is positive as the prices recorded higher tops and higher bottoms since May 16. The upward momentum is further reinforced by the rising 50-period moving average. The relative strength index is bullish and calls for a further advance.
Therefore, as long as 0.6870 is not broken, expect a new challenge to 0.6970 and even to 0.7000 in extension.
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 0.6970 and the second one at 0.7000. In the alternative scenario, short position is recommended with the first target at 0.6855 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6835. The pivot point is at 0.6870.
Resistance levels: 0.6970, 0.7000, and 0.7045
Support levels: 0.6855, 0.6835, and 0.6805
The material has been provided by InstaForex Company - www.instaforex.com