NZD/USD is expected to trade in a lower range. The pair is capped by a declining trendline (established since July 28) and is trading below the 20- and 50-period MAs. The intraday RSI is below the neutrality level at 50 and lacks upward momentum. As long as the key resistance at 0.6580 is not broken, look for further downside to 0.6500 and 0.6470 in extension. Only a break above 0.6575 would make the intraday outlook bullish with the first alternative upside target at 0.6615.
Technical comment: The daily chart is mixed as the MACD is bearish, but stochastics is neutral.
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 0.6550.
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