NZD/USD is expected to trade with bearish bias as the key resistance at 0.7170. The pair broke above its 20-period and 50-period moving averages and is holding on the upside. The relative strength index is above its neutrality level at 50 and is heading upwards. Nevertheless, 0.7170 (Nov 10 bottom) is playing a key resistance role, which should limit the upside potential. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as 0.7170 is not broken, the pair is likely to return to 0.7070 (previous low). A break below this level would call for a further drop toward 0.7020.
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 0.7070. A break below this target will move the pair further downwards to 0.7020. The pivot point stands at 0.7170. 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 0.7230 and the second one at 0.7300.
Resistance levels: 0.7230, 0.7300, 0.7345
Support levels: 0.7075, 0.7020, 0.6960
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