NZD/USD is expected to prevail its upside movement. The pair is positively oriented, backed by its ascending 50-period moving average. The process of higher highs and lows remains intact, which indicates that the prices are still in a healthy uptrend. The relative-strength index has just landed on its neutrality area at 50, which should provide a strong support. Hence, as long as 0.6685 is not broken, a continuation of the rebound is expected to 0.68 and 0.6835 in extension.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.68 and the second one at 0.6835. In the alternative scenario, short positions are recommended with the first target at 0.6640 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6590. The pivot point is at 0.6685.
Resistance levels: 0.68, 0.6835, 0.6860
Support levels: 0.6640, 0.6590, 0.6560
The material has been provided by InstaForex Company - www.instaforex.com