NZD/USD is Under pressure. Despite of recent rebound from 0.7150 (previous low), the pair is still under pressure below the key resistance at 0.7210, which maintains the selling pressure. In addition, the declining 50-period moving average is playing a resistance role and suggests that the price still has potential for a further drop. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. As long as 0.7210 is not surpassed, the pair is likely to return to its next support at 0.7150. A break below this level would bring a new drop to 0.7120.
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 0.7250. A break below this target will move the pair further downwards to 0.7120. The pivot point stands at 0.7210. If 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 0.7240 and the second one at 0.7280.
Resistance levels: 0.7240, 0.7280 and 0.7310
Support levels: 0.7150, 0.7120, and 0.7085
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