We retain our yesterday's outlook for NZD/USD. The pair is expected to trade in a lower range. Although the pair broke above both 20-period and 50-period moving averages, it is still trading below the key resistance at 0.7285, which should limit the upside potential. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.
Therefore, as long as 0.7285 holds on the upside, a return to 0.7240 and even to 0.7225 seems more likely to occur.
Strategy: SELL Stop Loss: 0.7285. Take Profit: 0.7240
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7300, 0.7320, and 0.7345
Support levels: 0.7240, 0.7225, and 0.7200
The material has been provided by InstaForex Company - www.instaforex.com