NZD/USD is expected to trade with a bullish bias above 0.7255. Despite the recent pullback from 0.7320 (the high of September 12), the pair is still trading above the rising 50-period moving average. The relative strength index is mixed to bullish. The downside potential should be limited by the key support at 0.7255.
Hence, as long as this key level is not broken, look for a further rebound to 0.7340 and even to 0.7370 in extension.
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: 0.7340, 0.7370, and 0.7415
Support levels: 0.7240, 0.7220, and 0.7200
The material has been provided by InstaForex Company - www.instaforex.com