NZD/USD is expected to trade with the overall downside movement. The technical picture of the pair is bearish below its declining 20-period and 50-period moving averages, which act as resistance and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, the 0.7175 represents a significant key resistance level, which should limit the upside potential. As long as the key level at 0.7175 holds on the upside, look for a further drop toward 0.7105 and 0.7075 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 0.7105. A break below this target will move the pair further downwards to 0.7075. The pivot point stands at 0.7175. 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 0.7205 and the second one at 0.7230.
Resistance levels: 0.7205, 0.7230, 0.7250
Support levels: 0.7105, 0.7075, 0.7025
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