NZD/USD is under pressure and expected to continue its downside movement. The pair remains under pressure below its key resistance at 0.7300 (Sept 29 top), which should limit the upside potential. Meanwhile, both the descending 20-period and 50-period moving averages are playing resistance roles, and maintain a bearish bias. In addition, the relative strength index is below its neutrality area at 50, and calls for further fall. To conclude, as long as 0.7300 holds on the upside, we expect continuation of the downward trend to 0.7220, and even to 0.7200.
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 0.7220. A break below this target will move the pair further downwards to 0.7200. The pivot point stands at 0.7300. 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 0.7330 and the second one at 0.7350.
Resistance levels: 0.7330, 0.7350, 0.7405
Support levels: 0.7220, 0.7200, 0.7175
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