NZD/USD is expected to trade in a bearish bias. The pair is in consolidation now after the recent rallies. The relative strength index is mixed, calling for caution. In the coming trading hours, the pair is likely to test its nearest resistance at 0.6830, which is expected to hold on the upside, and allow for a temporary stabilisation. To sum up, the immediate trend is mixed, and calls for caution. Below 0.6830, look for a new low to 0.6705 and 0.66660 after a limited consolidation.
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 0.6705. A break of this target will move the pair further downwards to 0.6660. The pivot point stands at 0.6830. 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 0.6880 and the second target at 0.6925.
Resistance levels: 0.6880, 0.6925, 0.6975
Support levels: 0.6705, 0.666, 0.6620
The material has been provided by InstaForex Company - www.instaforex.com