NZD/USD is expected to trade with a bearish outlook. The pair is holding on the downside and is trading below the declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index has broken down its oversold level of 30.
Therefore, as long as 0.6965 holds on the upside, look for a further decline to 0.6920 and even to 0.6900 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 0.6920. A break below this target will move the pair further downwards to 0.6900. 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: 0.6920, 0.6900, and 0.6870
The material has been provided by InstaForex Company - www.instaforex.com