NZD/USD is expected to trade with bullish bias as the pair is hovering above the support at 0.7010. The pair broke above the 20-period and 50-moving averages with strong upward momentum. In addition, the 20-period moving average is turning up. The relative strength index calls for a new upleg.
Therefore, as long as the support holds at 0.7010, look for a further rise to 0.7060 and even to 0.7090 in extension.
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 0.7060 and the second one at 0.7090. In the alternative scenario, short positions are recommended with the first target at 0.6995 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 0.6980. The pivot point is at 0.7010.
Resistance levels: 0.7060, 0.7090, and 0.7135
Support levels: 0.6995, 0.6980, and 0.6960
The material has been provided by InstaForex Company - www.instaforex.com