NZD/USD is expected to trade with a bearish bias as key resistance is seen at 0.726590. The pair is trading below its 20-period and 50-period moving averages, which are playing resistance roles. The relative strength index is below its neutrality area at 50 and lacks upward momentum. In addition, 0.7290 represents a significant key resistance, and the upside potential should be limited by this level. At this prospect, until 0.7290 is not broken above, the pair is likely to pull back to its next support at 0.7200. A break below this level would open the way to further weaknesses toward the next support at 0.7160.
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 0.7200. A break of this target will move the pair further downwards to 0.7160. The pivot point stands at 0.7290. In case 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 0.7340 and the second one, at 0.7380.
Resistance levels: 0.7340, 0.7375, 0.7410
Support levels: 0.7200, 0.7160, 0.7120
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