NZD/USD is expected to trade with a bullish bias. The pair broke below its 20-period moving average but is still trading above its 50-period one, which is playing a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50. Additionally, 0.7270 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 0.7335. A break above this level would call for a further advance toward 0.7370.
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 0.7335 and the second one at 0.7370. In the alternative scenario, short positions are recommended with the first target at 0.7220 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 0.7190. The pivot point lies at 0.7270.
Resistance levels: 0.7335, 0.7370, 0.7405
Support levels: 0.7220, 0.7190, 0.7155
The material has been provided by InstaForex Company - www.instaforex.com