NZD/USD is under pressure. The pair broke below the rising trend line, which confirms a negative view. Moreover, the 50-period moving average is turning down, which plays resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 0.7260 is resistance, look for a further downside towards 0.7220 and even 0.7200 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 0.7220. A break below this target will move the pair further downwards to 0.7200. The pivot point stands at 0.7260. If 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 0.7280 and the second one at 0.7305.
Resistance levels: 0.7280, 0.7305, 0.7340
Support levels: 0.7220, 0.7200, 0.7175
The material has been provided by InstaForex Company - www.instaforex.com
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