NZD/USD is Under pressure. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 0.7040 is playing a key resistance role, which should limit the upside potential. As long as 0.7040 holds on the upside, look for a further drop toward 0.6950. A break below this level would call for a further decline toward 0.6920.
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 0.6950. A break below this target will move the pair further downwards to 0.6920. The pivot point stands at 0.7040. 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 0.7090 and the second one at 0.7110.
Resistance levels: 0.7090, 0.7110, 0.7140
Support levels: 0.6850, 0.6920, 0.6885
The material has been provided by InstaForex Company – www.instaforex.com
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