NZD/USD is expected to trade with bullish bias. The pair is trading around its 20-period and 50-period moving averages, which are flat and do not show any clear directions. The relative strength index is around its neutrality level at 50. Nevertheless, 0.7270 is playing a key support role, which should limit the downside potential. As long as this key level is not broken, we keep our positive view unchanged with up target at 0.7340. A break above this level would call for a further advance toward 0.7370.
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 0.7340 and the second one at 0.7370. In the alternative scenario, short positions are recommended with the first target at 0.7230, 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 0.7190. The pivot point lies at 0.7270.
Resistance levels: 0.7340, 0.7370, 0.7405
Support levels: 0.7230, 0.7190, 0.7155
The material has been provided by InstaForex Company – www.instaforex.com
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