NZD/USD is under pressure. The pair has confirmed its bearish trend after the recent downside breakout of the previous support at 0.7325, which now acts as a resistance role. The downward momentum is further reinforced by its descending 50-period moving average, which should continue to push the prices lower. Besides, the relative strength index is mixed to bearish. To sum up, as long as the resistance at 0.7325 is not surpassed, the pair is likely to drop to 0.7270 at first, and even to 0.7250 in extension.
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 0.7270. A break below this target will move the pair further downwards to 0.7250. The pivot point stands at 0.7325. 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 0.7360 and the second one, at 0.7385.
Resistance levels: 0.7360, 0.7385, 0.7405
Support levels: 0.7270, 0.7250, 0.7235
The material has been provided by InstaForex Company – www.instaforex.com
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