NZD/USD is exected to trade in a lower range. The pair remains capped by its key resistance at 0.6550, and seems likely to post further upside. Both the ST and intraday outlooks are negative as the key moving averages maintain strong selling pressure. On an intraday basis, even though a technical rebound cannot be ruled out at the current stage, its extent should be limited by 0.6675. To sum up, the pair is expected to decline to test its support base around 0.6515. In case of a breakout, look for 0.6500 and 0.6485 as our next targets.
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 0.6630 and the second target at 0.6675. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.6515. A break of this target would push the pair further downwards, and one may expect the second target at 0.6465. The pivot point is at 0.6550.
Resistance levels: 0.6630 0.6675 0.6735
Support levels: 0.6515 0.6465 0.6415
The material has been provided by InstaForex Company – www.instaforex.com