NZD/USD is under pressure. The pair has been capped by its descending 20-period and 50-period moving averages and is looking for a lower bottom. Meanwhile, the relative strength index stays below 50. Even though a technical rebound is possible, its extent should be limited. The first target to the downside is set at the horizontal support and overlap at 0.6840. A break below this level would open the way to further weakness towards 0.6820.
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 0.6840. A break of this target will move the pair further downwards to 0.6820. The pivot point stands at 0.6980. 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 0.7025 and the second target at 0.7055.
Resistance levels: 0.7025, 0.7055, 0.71
Support levels: 0.6840, 0.6820, 0.6775
The material has been provided by InstaForex Company - www.instaforex.com