NZD/USD is under pressure. The pair has been capped by its descending 20-period and 50-period moving averages, and is looking for a lower bottom. Meanwhile, the relative strength index stays below 50 and lacks upward momentum. Hence, as long as 0.7055 holds as the key resistance, the risk of a break below 0.7010 remains high.
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 0.7010. A break below this target will move the pair further downwards to 0.6980. The pivot point stands at 0.7055. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 0.7080 and the second one at 0.7105.
Resistance levels: 0.7080, 0.7105, 0.7150
Support levels: 0.7010, 0.6980, 0.6950
The material has been provided by InstaForex Company - www.instaforex.com