NZD/USD is expected to prevail its downside movement. The pair remains on the downside, and is likely to test the next support at 0.7300. Meanwhile, the descending 50-period moving average plays a resistance role, and should continue to push the prices lower. In addition, the relative strength index is below its neutrality area at 50. To conclude, as long as 0.7300 holds on the upside, the pair is likely to drop to 0.7220 at first, and then to 0.7185.
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 0.7180. The pivot point stands at 0.7300. In case 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 0.7335 and the second one, at 0.7380.
Resistance levels: 0.7335, 0.7380, 0.7410
Support levels: 0.7220, 0.7185, 0.7120
The material has been provided by InstaForex Company – www.instaforex.com