NZD/USD is expected to keep its upside movement. The pair stands firmly above its horizontal support at 0.7290 and is likely to post a new rebound. The 50-period moving average is well directed, and maintains the bullish bias. In addition, the relative strength index jumped above its neutrality area at 50, and is bullish now. Hence, as long as 0.7290 holds as a support, look for further advance to 0.7425 and even to 0.7445 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 0.7425 and the second one at 0.7445. 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 0.7290.
Resistance levels: 0.7425, 0.7445, 0.7490
Support levels: 0.7255, 0.7220, 0.7200
The material has been provided by InstaForex Company - www.instaforex.com