NZD/USD is Under pressure. The technical picture of the pair is bearish as the price is capped by the negative trend line since Mar. 6. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The upside potential should be limited by the key resistance at 0.6930.
Therefore, as long as this key level holds on the upside, expect a new drop to 0.6860 and even to 0.6835 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 0.6860. A break below this target will move the pair further downwards to 0.6835. 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: 0.6860, 0.6835, and 0.6800
The material has been provided by InstaForex Company - www.instaforex.com