NZD/USD is expected to trade in a lower range as the key resistance stands at 0.6965. Despite a recent rebound from 0.6925 (the low of April 11), the pair is still trading below the key resistance at 0.6955, which should limit the upside potential. The relative strength index lacks upward momentum.
To sum up, as long as 0.6965 holds on the upside, a return to 0.6900 and even to 0.6885 seems more likely to occur.
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 0.6900. A break below this target will move the pair further downwards to 0.6885. The pivot point stands at 0.6965. 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 0.6980 and the second one at 0.7005.
Resistance levels: 0.6980, 0.7005, and 0.7020
Support levels: 0.6900, 0.6885, and 0.6850
The material has been provided by InstaForex Company - www.instaforex.com