NZD/USD is expected to trade with bullish outlook. The pair posted a rebound and broke above the 20-period and 50-period moving averages, which play support roles. The 20-period moving average is turning up. The relative strength index is bullish and calls for a further upside.
To conclude, as long as 0.6955 is support, look for a new rise to 0.6990 and 0.7005 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 0.6990 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: 0.6955, 0.7005, and 0.7020
Support levels: 0.6935, 0.6915, and 0.6870
The material has been provided by InstaForex Company - www.instaforex.comfrom www.instaforex.com
