NZD/USD is expected to continue its rebound. The pair is rebounding and broke above its 20-period and 50-period moving averages. The relative strength index stands firmly above its neutrality level at 50. Additionally, 0.7035 is playing a key support role, which should limit the downside potential. As long as this key level holds on the downside, look for a further upside toward 0.7110. A break above 0.7110 would call for a further advance toward 0.7140.
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 0.7110 and the second one at 0.7140. In the alternative scenario, short positions are recommended with the first target at 0.7110 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 0.7140. The pivot point lies at 0.7035.
Resistance levels: 0.7110, 0.7140, 0.7180
Support levels: 0.7010, 0.6990, 0.6955
The material has been provided by InstaForex Company - www.instaforex.com