The pair moved as predicted yesterday and all our targets have been hit. Today NZD/USD is expected to trade with a bullish bias above 0.7165. The pair recorded higher tops and higher bottoms since June 5, which confirmed a positive outlook. The rising 50-period moving average suggests that the prices have potential for a further upside.
Therefore, as long as 0.7165 holds on the downside, look for a new advance to 0.7230 and even to 0.7260 in extension.
At present, the pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above its pivot point. Therefore, long position is recommended with the first target at 0.7230 and the second one at 0.7260. In the alternative scenario, short position is recommended with the first target at 0.7145 if the price moves below its pivot points. A break of this target is expected to push the pair further downwards, and one may expect the second target at 0.7110. The pivot point lies at 0.7165.
Strategy : BUY at dips, Stop Loss: 0.7165, 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 indicates the short position. The red lines shows the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7230, 0.7260, and 0.7280
Support levels: 0.7145,0.7110, and 0.7080
The material has been provided by InstaForex Company - www.instaforex.com