NZD/USD is expected to trade with a bearish bias as key resistance at 0.7220. The pair stays below its key resistance at 0.7220 and remains under pressure. Meanwhile, the 20-period moving average stays below the 50-period one, and the relative strength index lacks upward momentum. As long as 0.7220 is not broken above, look for a further decline to test 0.7075.
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 0.7125. A break below this target will move the pair further downwards to 0.7075. The pivot point stands at 0.7220. If 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 0.7260 and the second one at 0.7295.
Resistance levels: 0.7260, 0.7295, 0.7345
Support levels: 0.7125, 0.7075, 0.7055
The material has been provided by InstaForex Company - www.instaforex.com