NZD/USD is expected to trade in higher range. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is supported by a rising trend line and is above its neutrality level at 50. Additionally, 0.7120 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 0.7185 and even 0.7205 in extension.
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 0.7185 and the second one at 0.7205. In the alternative scenario, short positions are recommended with the first target at 0.7105 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 0.7075. The pivot point lies at 0.7120.
Resistance levels: 0.7185, 0.7205, 0.7255
Support levels: 0.7105, 0.7075, 0.7045
The material has been provided by InstaForex Company – www.instaforex.com
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