NZD/USD is under pressure. The pair remains bearish below its horizontal resistance at 0.7375. Meanwhile, the descending 50-period moving average also plays a resistance role, and should limit the upside attempts. Furthermore, the relative strength index is below its neutrality area at 50. To conclude, as long as 0.7375 holds on the upside, the pair is likely to drop to 0.7310 at first, if breakout, look for further decline to 0.7270 as possible.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.770. A break below this target will move the pair further downwards to 0.7235. The pivot point stands at 0.7375. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7410 and the second one, at 0.7435.
Resistance levels: 0.7410, 0.7435, 0.7480
Support levels: 0.7270, 0.7235, 0.7190
The material has been provided by InstaForex Company – www.instaforex.com
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