NZD/USD is expected to trade in lower range as the key resistance is at 0.7345. The pair broke above its 20-period and 50-period moving averages and is holding on the upside. In addition, the 20-period moving average is turning up. The relative strength index is above its neutrality level at 50. Nevertheless, 0.7345 represents a significant key resistance level, which should limit the upside potential. As long as this key level is not broken, expect a return to its next support at 0.7260. A break below this level would call for a further downside to 0.7240.
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 0.7260. A break below this target will move the pair further downwards to 0.7240. The pivot point stands at 0.7345. 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 0.7375 and the second one at 0.7390.
Resistance levels: 0.7375, 0.7390, and 0.7435
Support levels: 0.7260, 0.7240, and 0.7200
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