NZD/USD is expected to trade with a bullish outlook. The pair is trading around its 20-period and 50-period moving averages and is holding on the upside. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.6970 represents a significant key support level, which should limit the downside potential. As long as this key level is not broken, look for a further upside toward 0.7090. A break above this level would call for a further advance toward 0.7110.
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 0.7090 and the second one at 0.7110. In the alternative scenario, short positions are recommended with the first target at 138.70, if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6920. The pivot point lies at 0.6970.
Resistance levels: 0.7090, 0.7110, 0.7140
Support levels: 0.6950, 0.6920, 0.6885
The material has been provided by InstaForex Company – www.instaforex.com
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