NZD/USD is expected to trade with bullish bias. The pair broke above its 20-period and 50-period moving averages as well as the upper boundary of the Bollinger Band, which confirms a positive view. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 0.7135 is support, look for a further upside toward 0.7205. A break above this level would call for a further advance toward 0.7230.
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 0.7205 and the second one at 0.7230. In the alternative scenario, short positions are recommended with the first target at 0.7105 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7075. The pivot point lies at 0.7135.
Resistance levels: 0.7205, 0.7230, 0.7255
Support levels: 0.7105, 0.7075, 0.7045
The material has been provided by InstaForex Company - www.instaforex.com