NZD/USD is expected to trade with bullish bias above 0.7105. The pair broke above the 50-period moving average and remains on the upside. A support base at 0.7105 is formed and allows a temporary stabilization. Meanwhile, a bullish cross was identified between the 20-period and 50-period moving averages. Besides, the relative strength index is above its neutrality area at 50 and lacks downward momentum. In this case, as long as 0.7105 holds on the downside, the intraday outlook stays positive with targets at 0.7185 and 0.7220 in extension.
Recommendation:
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 0.7185 and the second one, at 0.7220. In the alternative scenario, short positions are recommended with the first target at 0.7075 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 0.7040. The pivot point is at 0.7105.
Resistance levels: 0.7185, 0.7220, 0.7260
Support levels: 0.7075, 0.7040, 0.7
The material has been provided by InstaForex Company - www.instaforex.com