NZD/USD is expected to trade with bearish bias. The pair established a new intraday bearish trend after the recent break above its 20-period MA. A strong resistance base has formed around 0.6640, which should prevent any downward attempts. Besides, the intraday 20- and 50-period MAs are turning down, and continue to push the prices lower. The intraday RSI stands above the neutrality level at 50. Hence, as long as 0.6640 is not broken, look for further downside to 0.6525 and then to 0.6490.
Technical comment: The daily chart is negative-biased as the MACD indicator is bearish.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.6525. A break of this target will move the pair further downwards to 0.6490. The pivot point stands at 0.6640. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.6675 and the second target at 0.6700.
Resistance levels: 0.6675 0.67 0.6745
Support levels: 0.6525 0.6490 0.6455
The material has been provided by InstaForex Company – www.instaforex.com