NZD/USD is expected to trade with a bullish bias. The pair broke above its 50-period moving average and is holding on the upside. The 20-period moving average is turning up and is playing support role. The relative strength index is supported by a rising trend line and is above its neutrality level at 50. As long as 0.7155 is support, look for a further upside toward 0.7225 and even 0.7245 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 0.7225 and the second one at 0.7245. In the alternative scenario, short positions are recommended with the first target at 0.7145 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7115. The pivot point is at 0.7165.
Resistance levels: 0.7225, 0.7245, 0.7275
Support levels: 0.7145, 0.7115, 0.7090
The material has been provided by InstaForex Company – www.instaforex.com