NZD/USD is turning down. The pair reversed down after the recent downside breakout of the support of its 50-period moving average. The 20-period moving average is turning down, and also crossed below the 50-period one. The nearest resistance at 0.6520 keeps placing prices under strong selling pressure. Last but not least, the relative strength index is badly directed, without showing any reversal signs. Hence, as long as 0.6520 holds on the upside, look for further decline to 0.6410 and 0.6370 in extension.
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 0.6410. A break of that target will move the pair further downwards to 0.6350. The pivot point stands at 0.6520. 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 0.6550 and the second target at 0.6610.
Resistance levels: 0.6550, 0.6610, 0.6650
Support levels: 0.6410, 0.6350, 0.63
The material has been provided by InstaForex Company - www.instaforex.com