NZD/USD is under pressure. The pair is trading below the descending 50-period moving average, which plays a resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. In addition, the upside potential should be limited by the key resistance at 0.6990.
Therefore, as long as this key level is not surpassed, expect a further drop to 0.6945 and even to 0.6930 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 0.6945. A break below this target will move the pair further downwards to 0.6930. The pivot point stands at 0.6990. 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 0.7005 and the second one at 0.7020.
Resistance levels: 0.7005, 0.7020, and 0.7055
Support levels: 0.6945, 0.6930, and 0.6900
The material has been provided by InstaForex Company - www.instaforex.comfrom www.instaforex.com
