NZD/USD is expected to trade in a lower range. The pair posted a strong decline last Friday, and is now challenging its nearest support at 0.6540. A bearish cross has been identified between the 20-period and 50-period moving averages. Besides, the relative strength index is badly directed, but is now within its “oversold” area (below 30%), which may indicate a potential technical rebound. Nevertheless, as long as 0.6650 holds on the upside, any rebounds should be limited before further downside to 0.6540 and 0.650 in extension.
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 0.6540. A break of this target will move the pair further downwards to 0.65. The pivot point stands at 0.6650. 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 0.6680 and the second target at 0.6725.
Resistance levels: 0.6820, 0.6860, 0.69
Support levels: 0.6670, 0.6635, 0.66
The material has been provided by InstaForex Company – www.instaforex.com
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