NZD/USD is expected to advance further. The pair is holding on the upside. The rising 20-period and 50-period moving averages play support roles and maintain the bullish bias. The relative strength index has been supported by the ascending trend line since April 27.
Therefore, as long as 0.6890 holds on the downside, expect a new challenge to 0.6940 and even to 0.6955 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 0.6940 and the second one at 0.6955. In the alternative scenario, short positions are recommended with the first target at 0.6875 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 0.6850. The pivot point is at 0.6890.
Resistance levels: 0.6940, 0.6955, and 0.6975
Support levels: 0.6875, 0.6850, and 0.6800
The material has been provided by InstaForex Company - www.instaforex.com