NZD/USD is expected to trade above 0.6550 with a bullish bias today. The pair recently broke above an intraday declining trendline thanks to a strong technical rebound, and now stands firmly above the key horizontal support at 0.6550. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited to 0.6565. The intraday RSI lacks downward momentum. To sum up, the intraday outlook is still positive with targets at 0.6620 and 0.6660 in extension.
Technical comment: The daily chart is positive bias as RSI and the MACD are showing bullish trend.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.6620 and the second target at 0.6660. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.65. A break of this target would push the pair further downwards, and one may expect the second target at 0.6455. The pivot point is at 0.65550.
Resistance levels: 0.6620 0.6660 0.6695
Support levels: 0.65 0.6455 0.64
The material has been provided by InstaForex Company – www.instaforex.com