NZD/USD is expected to tade in a lower range as a bias remains bearish. The pair broke below its 20-period and 50-period moving averages and accelerated on the downside. The downward momentum is further reinforced by its declining 20-period and 50-period moving averages, which are playing resistance roles and maintain the downside bias. The relative strength index has broken down its 30 level and lacks upward momentum. As long as 0.7325 holds on the upside, look for a further drop toward 0.7270 and even 0.7250 in extension.
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 0.7270. A break below this target will move the pair further downwards to 0.7250. The pivot point stands at 0.7325. 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 0.7360 and the second one, at 0.7385.
Resistance levels: 0.7360, 0.7385, 0.7405
Support levels: 0.7270, 0.7250, 0.7235
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