NZD/USD is expected to advance further. The pair recorded a succession of higher tops and higher bottoms since September 15, and is likely to challenge its nearest resistance at 0.7335 in the coming trading hours. At the same time, both the 20-period and 50-period moving averages are heading upward, and should also push the prices higher. Besides, the relative strength index is bullish above its neutrality area at 50. In conclusion, as long as 0.7275 is not broken, a new rise is expected to 0.7335 and even to 0.7380 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 0.7335 and the second one at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7255 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 0.7220. The pivot point is at 0.7275.
Resistance levels: 0.7335, 0.7380, 0.7410
Support levels: 0.7255, 0.7220, 0.7185
The material has been provided by InstaForex Company - www.instaforex.com