NZD/USD is expected to trade upward and move further upside. The pair stands firmly above its horizontal support at 0.7180 as a support base has formed at this level, which should limit the downside attempts. The rising 50-moving average acts as a support role and maintains the upside bias. The relative strength index is above its neutrality area at 50 and lacks downward momentum. As long as 0.7180 is support, look for further upside toward 0.7295 and even 0.7320 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 0.7320295 and the second one, at 0.7320. In the alternative scenario, short positions are recommended with the first target at 0.7145, 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 0.7105. The pivot point is at 0.7180.
Resistance levels: 0.7295, 0.7320, 0.7400
Support levels: 0.7145, 0.7105, 0.7065
The material has been provided by InstaForex Company - www.instaforex.com