NZD/USD is expected to trade with a bullish bias above 0.7040. The pair has bounced up from another test of its key support at 0.7040, which should limit the downside potential. The rising 50-period moving average is playing a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.
As long as 0.7040 is not broken, look for a further upside towards 0.7080 and even 0.7095 in extension.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7080 and the second one at 0.7095. In the alternative scenario, the short position is recommended with the first target at 0.7025 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6930. The pivot point is at 0.7040.
Resistance levels: 0.7080, 0.7095, and 0.7135
Support levels: 0.7025, 0.7005, and 0.6965
The material has been provided by InstaForex Company - www.instaforex.com
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