NZD/USD is expected to trade in higher range as bias remains bullish. The pair posted some consolidations last night, but still stands above its key support at 0.7290, and is likely to challenge its next resistance at 0.7330. In addition, the relative strength index lacks downward momentum. The U.S. dollar softened from a one-month high registered last Friday as traders repositioned ahead of this week’s central bank monetary policy meetings in the U.S. and Japan.Therefore, as long as 0.7290 is not broken, the intraday outlook is still positive with a first up target at 0.7385. A break above this level would open the way to further upside toward 0.7405.
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 0.7385 and the second one at 0.7405. In the alternative scenario, short positions are recommended with the first target at 0.7270 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 0.7250. The pivot point is at 0.7290.
Resistance levels: 0.7385, 0.7405, 0.7445
Support levels: 0.7270, 0.7250, 0.7235
The material has been provided by InstaForex Company – www.instaforex.com
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