NZD/USD is expected to trade with bearish bias below 0.7045. The pair posted a rebound, and broke below the 20-period moving average. The relative strength index is below its neutrality level at 50 and lacks upward momentum. The upside potential should be limited by the key resistance level at 0.7045.
To sum up, as long as this key level is not broken, expect a further decline to 0.7000 and even to 0.6975 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 0.6975. The pivot point stands at 0.7045. 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 0.7070 and the second one at 0.7095.
Resistance levels: 0.7070, 0.7095, and 0.7110
Support levels: 0.7000, 0.6975, and 0.6930
The material has been provided by InstaForex Company - www.instaforex.com
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