NZD/USD is under pressure. The pair is trading below its 50-period moving average and maintains a bearish bias. 0.7345 represents a key resistance and should limit the upside attempts. Furthermore, the relative strength index is below its neutrality area at 50. Therefore, as long as 0.7345 holds as a key resistance, the pair is likely to pull back to challenge its nearest support at 0.7265. A break below this level would open the path to further weaknesses toward 0.7235.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7265. A break of this target will move the pair further downwards to 0.7235. The pivot point stands at 0.7345. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7380 and the second one, at 0.7410.
Resistance levels: 0.7380, 0.7410, 0.745
Support levels: 0.7265, 0.7235, 0.7205
The material has been provided by InstaForex Company – www.instaforex.com