NZD/USD is expected to trade in a higher range. The pair broke above its 20-period and 50-period moving averages, which act as support and maintain the upside bias. The relative strength index is bullish above its neutrality level at 50. Additionally, 0.7115 is playing a key support role, which should limit the downside potential. As long as this key level holds on the downside, look for a further upside toward 0.7200 (previous top). A break above this level would call for a further advance toward 0.7250.
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 0.7200 and the second one at 0.7250. In the alternative scenario, short positions are recommended with the first target at 0.7060 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7015. The pivot point lies at 0.7115.
Resistance levels: 0.7200, 0.7250, 0.7300
Support levels: 0.7060, 0.7015, 0.6950
The material has been provided by InstaForex Company – www.instaforex.com
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