NZD/USD is expected to trade in a higher range. The pair is trading above its rising 20-period and 50-period intraday MAs. A support base has formed around 0.6650, which should limit any downside potential. In addition, the bias remains bullish. As long as 0.6650 holds as the key support, look for an opportunity to move further upside to 0.6740 first. A break above this level would call for further advance to 0.6770. Alternatively, a break below 0.6650 would turn the intraday outlook to negative and call for a drop to 0.6625 and even 0.6595 in extension.
Technical comment: The intraday RSI is above its neutrality level at 50.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.6740 and the second target at 0.6770. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.6625. A break of this target would push the pair further downwards, and one may expect the second target at 0.6595. The pivot point is at 0.6650.
Resistance levels: 0.6740 0.6770 0.6815
Support levels: 0.6625 0.6595 0.6535
The material has been provided by InstaForex Company - www.instaforex.com