NZD/USD is under pressure. The pair is trading below its resistance at 0.7200 (a key horizontal level), which maintains strong selling pressure. The downward momentum is further reinforced by its descending 50-period moving average. In addition, the relative strength index lacks upward momentum. To sum up, as long as 0.7200 is not surpassed, the pair is likely to drop to 0.7130, if breakout, look for further downsides to 0.7100 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 0.7130. A break below this target will move the pair further downwards to 0.7100. The pivot point stands at 0.7200. 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 0.7250 and the second one at 0.7300.
Resistance levels: 0.7250, 0.7300, 0.7330
Support levels: 0.7130, 0.7100, 0.7055
The material has been provided by InstaForex Company - www.instaforex.com