NZD/USD is expected to trade in a higher range. The pair reversed to the upside yesterday after breaking above an intraday declining trendline and now is challenging the first upside target at 0.6630. The 20- and 50-period MAs are still heading upwards, thus confirming a positive outlook. The intraday RSI is bullish above its neutrality level at 50 calling for a new rebound. Hence, as long as the key support at 0.6535 is not broken, look for a further advance to 0.6630 and 0.6675 in extension.
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 0.6535.
Resistance levels: 0.6630 0.6675 0.6735
Support levels: 0.6510 0.6465 0.6415
The material has been provided by InstaForex Company – www.instaforex.com