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Technical analysis of NZD/USD for July 31, 2015

NZDUSDM30.png

NZD/USD Intraday: the key resistance is seen at 0.6660. The pair is trading below its 50-period intraday MA, which acts as resistance. The intraday RSI is mixed around its neutrality level of 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. Below 0.6615, look for further downside to 0.65 and even 0.6540 in extension. Only a break above of 0.6615 would turn the outlook to positive with targets at 0.6660 and even 0.6690.

Technical comment: The price is trading below 20- and 50-period moving average. RSI is well directed downward.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.6540. A break of that target will move the pair further downwards to 0.65. The pivot point stands at 0.666. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.6690 and the second target at 0.6740.

Resistance levels: 0.6690 0.6740 0.6770

Support levels: 0.6540 0.65 0.6465

The material has been provided by InstaForex Company - www.instaforex.com