Our first target which predicted in yesterday's analysis has been hit. NZD/USD is under pressure and expected to continue its downside movement. The pair retreated and broke below its 20-period and 50-period moving averages. In addition, the declining 50-period moving average suggests that the prices have a potential for a further decline. The relative strength index lacks upward momentum.
To sum up, as long as 0.7225 is not surpassed, look for a return with targets at 0.7180 and 0.7165 in extension.
The black line is showing the pivot point. Currently, the price is above the pivot point, which indicates long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels and the green line is indicating the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7220, 0.7240, and 0.7260
Support levels: 0.7135, 0.7110, and 0.7070
The material has been provided by InstaForex Company - www.instaforex.com