NZD/USD is expected to advance further. The pair is holding on the upside above its 20-period and 50-period moving averages, which play support roles and maintain the upside bias. Moreover, the bullish cross between 20-period and 50-period moving averages has been identified. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. As long as 0.7255 is support, look for a further rise to 0.7300 and even 0.7325 in extension.
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 0.7300 and the second one at 0.7325. In the alternative scenario, short positions are recommended with the first target at 0.7235 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7200. The pivot point is at 0.7255.
Resistance levels: 0.7300, 0.7325, 0.7340
Support levels: 0.7235, 0.7200, 0.7175
The material has been provided by InstaForex Company - www.instaforex.com