NZD/USD is expected to trade with bullish bias above 0.6880. The pair bounced off its major horizontal support at 0.6835, and is currently challenging its nearest resistance at 0.6960. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. Additionally, both the 20-period and 50-period moving averages are heading upwards and calling for further upsides as well. To sum up, as long as 0.6880 (the current 50-period moving average) is not broken, expect a new bounce to 0.6960 at first, and then to 0.6990.
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 0.6960 and the second one at 0.6990. In the alternative scenario, short positions are recommended with the first target at 0.6835 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 0.6795. The pivot point is at 0.6880.
Resistance levels: 0.6960, 0.6990, 0.67050
Support levels: 0.6835, 0.6795, 0.6735
The material has been provided by InstaForex Company - www.instaforex.com