NZD/USD is expected to trade in a lower range as the key resistance stands at 0.6780. The pair remains under pressure below its nearest horizontal resistance at 0.6780, which maintains the strong selling pressure. The relative strength index is mixed, calling for caution. As long as resistance at 0.6775 is held, look for choppy price action with a bearish bias. Our next down targets are set at 0.6710 and 0.6680 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 0.67. A break of this target will move the pair further downwards to 0.6680. The pivot point stands at 0.6780. 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 0.6815 and the second target at 0.6840.
Resistance levels: 0.6815, 0.6840, 0.6890
Support levels: 0.6710, 0.6680, 0.6625
The material has been provided by InstaForex Company - www.instaforex.com