NZD/USD is exepcted to trade with bearish bias. The pair remains in a downtrend on an intraday basis supported by its key level at 0.6640. A bearish cross has been identified between the 20- and 50-period intraday MAs, which favors a new bounce. Moreover, the intraday RSI stands firmly above its neutrality level at 50. Further decline to challenge 0.6640 (the previous top) seems likely. The second downside target is set at 0.6525.
The daily chart is negative-biased as the MACD indicator is mixed and stochastic 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 0.6675. A break of this target will move the pair further downwards to 0.67. 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: 0.6525 0.6490 0.6450
Support levels: 0.6675 0.67 0.6735
The material has been provided by InstaForex Company – www.instaforex.com