NZD/USD is expected to trade with bullish bias above 0.7170. The pair is still in an uptrend, supported by its rising 50-period moving average. The nearest key level at 0.7170 should play a strong support role as well. Besides, the relative strength index lacks downward momentum, and is still above its neutrality area at 50. Hence, as long as 0.7170 is not broken, advance to 0.7240 and 0.7280 in extension is possible.
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 0.7240 and the second one at 0.7230. In the alternative scenario, short positions are recommended with the first target at 0.7150, 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 0.7120. The pivot point is at 0.7170.
Resistance levels: 0.7280 and 0.7310
Support levels: 0.7150, 0.7120, and 0.7085
The material has been provided by InstaForex Company - www.instaforex.com