NZD/USD is expected to trade with bearish bias as the key resistance at 0.7145. The pair failed to break above its key resistance at 0.7145 and is consolidating on the downside. The relative strength index is around its neutrality level at 50 and lacks upward momentum. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. The upward potential should be limited by its key resistance at 0.7145. As long as this key level holds on the upside, look for a further drop toward 0.7065 and even 0.7040 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 0.7065. A break below this target will move the pair further downwards to 0.7040. The pivot point stands at 0.7145. If 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 0.7175 and the second one at 0.7200.
Resistance levels: 0.7175, 0.72, 0.7245
Support levels: 0.7060, 0.7040, 0.7
The material has been provided by InstaForex Company – www.instaforex.com
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