As predicted on Friday, NZD/USD has been trading with bullish outlook and expected to continue its bullish outlook above 0.7170, and recommend buy position above 0.7170. The pair is consolidating above the key support at 0.7185, which should limit the downside potential. The relative strength index lacks downward momentum. Even though a further consolidation cannot be ruled out, its extents should be limited.
Hence, as long as 0.7170 is not broken, a further rise to 0.7230 and even to 0.7260 seems more likely to occur.
Strategy: BUY at dips, Stop Loss: 0.7170, Take Profit: 0.7230
Graph Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicate the short position. The red lines shows the support levels and the green line indicates the resistance levels. These levels can be used for enter and exit trades.
Resistance levels: 0.7230, 0.7260, and 0.7280
Support levels: 0.7145,0.7120, and 0.7100
The material has been provided by InstaForex Company - www.instaforex.com