NZD/USD is expected to prevail its downside movement as the bias remains bearish. The pair broke below the lower boundary of the Bollinger Bands, which calls for a new decline. Besides, the 20-period moving average is turning down, and is also playing a resistance role. In addition, 0.7300 represents a key horizontal resistance, and the upside potential should be limited by this level. In these perspectives, as long as 0.7300 holds on the upside, we expect further downsides to 0.7225, and even to 0.7220 as likely.
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 0.7225. 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: 0.7225, 0.7200, 0.7175
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