NZD/USD is expected to extend its upside movement. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7050 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, look for a further upside toward 0.7145 and 0.7175 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 0.7145 and the second one at 0.7175. In the alternative scenario, short positions are recommended with the first target at 0.7030 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 0.7000. The pivot point lies at 0.7050.
Resistance levels: 0.7145, 0.7175, 0.7225
Support levels: 0.7030, 0.7000, 0.6970
The material has been provided by InstaForex Company - www.instaforex.com