NZD/USD is under pressure. The pair is trading below its 20-period and 50-period moving averages and is holding on the downside. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 0.7095 (Oct 12 top) represents a significant key resistance level, which should limit the upside potential. The pair broke below the lower boundary of the Bollinger Band, which could signal a continuation of the bearish trend. As long as 0.7095 holds on the upside, look for a further drop toward 0.7000 and 0.6970 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 0.7000. A break below this target will move the pair further downwards to 0.6970. The pivot point stands at 0.7095. 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 0.7120 and the second one at 0.7145.
Resistance levels: 0.7120, 0.7145, 0.7175
Support levels: 0.7000, 0.6970, 0.6945
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