NZD/USD is expected to trade with a bullish bias. The technical picture of the pair is bullish above its rising 20-period and 50-period moving averages, which act as support and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7155 is playing a key support role, which should limit the downside potential. As long as 0.7155 holds on the downside, look for a further upside toward 0.7250 and 0.7280 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 0.7250 and the second one at 0.7280. In the alternative scenario, short positions are recommended with the first target at 0.7155 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 0.7125. The pivot point lies at 0.7175.
Resistance levels: 0.7250, 0.7280, 0.7300
Support levels: 0.7155, 0.7125, 0.7070
The material has been provided by InstaForex Company - www.instaforex.com