NZD/USD Intraday: Bullish bias above 0.7290. The pair broke above its 20-period moving average, and now stands firmly above its key support at 0.7290. The 50-period moving average is turning up and playing a support role. The relative strength index remains positive above its neutrality area at 50. The New Zealand dollar maintained its strength as NZD/USD rose 0.3% to 0.7312. This morning, the pair charged higher to challenge this month’s intraday high of 0.7344. In which case, as long as 0.7290 is not broken, look for a new rise to 0.7340 (Aug 23 top) and even to 0.7380 as possible.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7340 and the second one, at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7265 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7235. The pivot point is at 0.7290.
Resistance levels: 0.7340, 0.7380, 0.7425
Support levels: 0.7265, 0.7235, 0.7205
The material has been provided by InstaForex Company – www.instaforex.com