NZD/USD is under pressure as the price has been capped by a negative trend line since December 16, holding below 0.6925.
Meanwhile the 20-period moving average stays below the 50-period one. This morning, New Zealand's Statistics Office reported that the GDP volume was up by 1.1% QoQ in the third quater (vs +0.8% expected, +0.7% in 2Q).
To sum up, as long as 0.6925 is not broken above, a break below 0.6850 is likely.
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 0.6850. A break below this target will move the pair further downwards to 0.6825. The pivot point stands at 0.6925. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 0.6945 and the second one at 0.6965.
Resistance levels: 0.6945, 0.6965, 0.7015
Support levels: 0.6850, 0.6825, 0.6775
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2hfqnn0
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