NZD/USD is expected to post some further gains. The pair broke above its upper boundary of the Bollinger Band, which could signal a continuation of bullish trend with strong momentum. The rising 20-period and 50-period moving averages act as support and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50. As long as 0.7115 holds on the downside, look for further upside toward 0.7225 and 0.7250 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 0.7225 and the second one at 0.7250. In the alternative scenario, short positions are recommended with the first target at 0.7090 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 0.7070. The pivot point lies at 0.7115.
Resistance levels: 0.7225, 0.7250, 0.7300
Support levels: 0.7090, 0.7070, 0.7015
The material has been provided by InstaForex Company - www.instaforex.com