NZD/USD is expected to trade with a bearish bias. The pair broke above its 20-period and 50-period moving averages and is heading upwards. The relative strength index is bullish above its neutrality level at 50. However, 0.7100 is playing a key resistance role. We are cautious now. As long as the key level at 0.7140 is not broken up, we keep our negative view unchanged with down target at 0.7065 first. A break below this level would call for a further decline toward 0.7035.
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 0.7065. A break below this target will move the pair further downwards to 0.7035. The pivot point stands at 0.7140. 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 0.7180 and the second one at 0.7215.
Resistance levels: 0.7180, 0.7215, 0.7360
Support levels: 0.7065, 0.7035, 0.6990
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