NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair broke below its 20-period moving average but is still holding above its rising 50-period one, which is playing a support role and maintains the upside bias. A support base has formed around 0.7275, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as the 0.7275 support is held, look for a further upside toward 0.7360 and even 0.7385 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 0.7360 and the second one at 0.7385. In the alternative scenario, short positions are recommended with the first target at 0.7250 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 0.7235. The pivot point is at 0.7275.
Resistance levels: 0.7360, 0.7385, 0.7410
Support levels: 0.7250, 0.7235, 0.7185
The material has been provided by InstaForex Company – www.instaforex.com