NZD/USD is under pressure. The pair is trading below its 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish below its neutrality level at 50 and lacks upward momentum. In addition, the upside potential should be limited by the key resistance at 0.7070.
Therefore, as long as this key level is not surpassed, look for a further drop to 0.7005 and even to 0.6975 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 0.7005. A break below this target will move the pair further downwards to 0.6975. The pivot point stands at 0.7070. 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 0.7095 and the second one at 0.7110.
Resistance levels: 0.7095, 0.7110, and 0.7155
Support levels: 0.7005, 0.6975, and 0.6930
The material has been provided by InstaForex Company - www.instaforex.com