NZD/USD is moving downwards. The pair has lost upward momentum and is reversing down. A bearish cross has been identified between the 20-period and 50-period moving averages. Furthermore, strong resistance is seen around 0.6790. Even though a potential technical rebound cannot be ruled out, its extent should be limited by this threshold. To sum up, as long as 0.6790 holds on the upside, watch for a return to 0.6715 and even to 0.6685 (the low of December 14).
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6715. A break of that target will move the pair further downwards to 0.6685. The pivot point stands at 0.6790. 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, long positions are recommended with the first target at 0.6835 and the second target at 0.6685.
Resistance levels: 0.6835 0.6880 0.6930
Support levels: 0.6715 0.6685 0.6660
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