We are going to retain our yesterday's target downside target. NZD/USD is expected to trade with a bearish outlook.The pair broke below the key support at 0.7385 (lows of August 3 and 4), which becomes the key resistance now. The downward momentum is further reinforced by the declining 50-period moving averages. The relative strength index is mixed with a bearish bias.
Hence, as long as 0.7385 holds on the upside, look for a new decline to 0.7330 and even to 0.7305 in extension.
Chart Explanation:
The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it remains below the pivot point, it will indicate 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: 0.7420, 0.7455, and 0.7475
Support levels: 0.7330, 0.7305, and 0.7300
The material has been provided by InstaForex Company - www.instaforex.com