NZD/USD is under pressure. The pair recorded a succession of lower tops and lower bottoms since Aug 2 and is consolidating on the downside. The declining 20-period and 50-period moving averages maintain the downside bias. The relative strength index is below its neutrality level at 50. As long as 0.7220 holds on the upside, look for further drop toward 0.7135 and even 0.7100 in extension.
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