NZD/USD is expected to trade with a bearish bias below 0.7370. The pair is consolidating and broke below its 20-period moving average. However, the rising 50-period moving average is still playing a support role and maintains the upside bias, while the relative strength index is above its neutrality level at 50. Additionally, 0.7370 is playing a key resistance role, which should limit the upside potential. As long as this key level is not broken, look for a further decline toward 0.7270 and 0.7370 in extension.
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 0.7270. A break below this target will move the pair further downwards to 0.7230. The pivot point stands at 0.7370. 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 0.7400 and the second one at 0.7420.
Resistance levels: 0.7400, 0.7420, 0.7450
Support levels: 0.7270, 0.7230, 0.7190
The material has been provided by InstaForex Company - www.instaforex.com