NZD/USD is expected to trade with bearish bias. The pair is consolidating on the downside. The relative strength index is below its neutrality level at 50 and lacks upward momentum. In addition, 0.6930 is playing a key resistance level which should limit the upside potential.
Hence, as long as this key level is not broken, look for a further drop to 0.6885. A break below this level would bring a new drop to 0.6860.
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 0.6885. A break below this target will move the pair further downwards to 0.6860. The pivot point stands at 0.6930. 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 0.6950 and the second one at 0.6960.
Resistance levels: 0.6950, 0.6960, and 0.7015
Support levels: 0.68885, 0.6860, and 0.6830
The material has been provided by InstaForex Company - www.instaforex.com