NZD/USD is under pressure. The pair has been capped by the descending 50-period moving average and remains under pressure. At the same time, the relative strength index is around 50 and lacks upward momentum. Hence, as long as 0.6890 holds on the downside, look for a new pullback to 0.6805 and 0.6760 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 0.6805. A break of this target will move the pair further downwards to 0.6760. The pivot point stands at 0.6890. 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 0.6920 and the second target at 0.6945.
Resistance levels: 0.6920, 0.6945, 0.6980
Support levels: 0.6805, 0.6760, 0.6715
The material has been provided by InstaForex Company - www.instaforex.com