NZD/USD is expected to trade with bullish bias above 0.6955, although the pair retreated from 0.6990 (the high of April 6), a support base at 0.6955 has formed and has allowed for a temporary stabilization. The relative strength index lacks downward momentum.
To conclude, as long as 0.6955 holds on the downside, look for a rebound to 0.6990. A break above this level would call another upside to 0.7005.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6990 and the second one at 0.7005. In the alternative scenario, short positions are recommended with the first target at 0.6935, if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6915. The pivot point is at 0.6955.
Resistance levels: 0.6990, 0.7005, and 0.7020
Support levels: 0.6935, 0.6915, and 0.6870
The material has been provided by InstaForex Company - www.instaforex.com