Upside movements are expected to dominate the NZD/USD dynamic. The technical picture of NZD/USD remains positive above a bullish trend line, which emerged on July 27. The pair broke below its 20-period moving average, but is still trading above the 50-period one, which plays a support role and maintains the upside bias. Additionally, a support base has formed around 0.7125, which should limit the downside potential. As long as the 0.7125 support is held, look for further advance towards 0.7230 and 0.7260 in extension.
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 0.7230 and the second one at 0.7260. 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 0.7055. The pivot point is at 0.7125.
Resistance levels: 0.7230, 0.7260, 0.7300
Support levels: 0.7075, 0.7055, 0.7010
The material has been provided by InstaForex Company - www.instaforex.com