NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair broke below 20-period and 50-period moving averages and the relative strength index is below its neutrality area at 50. Nevertheless, a support base at 0.7230 has been formed and should limit the downside attempts. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.7230 is not broken, we are still positive with an upside target at 0.7310 (Aug 17 & 18 top). A break above this level would open the way to a further upside move toward the next resistance at 0.7340.
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 0.7300 and the second one, at 0.7340. In the alternative scenario, short positions are recommended with the first target at 0.7200 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 0.7170. The pivot point is at 0.7230.
Resistance levels: 0.7300, 0.7340, 0.7352
Support levels: 0.7200, 0.7170, 0.7145
The material has been provided by InstaForex Company – www.instaforex.com
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