NZD/USD is under pressure. The pair broke below the bearish trendline (since Feb 21) as well as its 20-period and 50-period moving averages, which confirmed a negative outlook. In addition, the 20-period moving average is about to cross below the 50-period one. The relative strength index also broke below the rising trendline, calling for a further drop.
Hence, as long as 0.7210 holds on the upside, expect a further drop to 0.7170 and even to 0.7145 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 0.7170. A break below this target will move the pair further downwards to 0.7145. 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 0.7225 and the second one at 0.7250.
Resistance levels: 0.7225, 0.7250, and 0.7280
Support levels: 0.7170, 0.7145, and 0.7100
The material has been provided by InstaForex Company - www.instaforex.com