NZD/USD is expected to trade in a higher range. The pair has recently formed a strong support base around 0.6540 and is now posting a technical rebound. Both the 20- and 50-period MAs are also turning up and providing support. Moreover, the intraday RSI is bullish above its neutrality area at 50. In this case, further advance is more likely to occur towards 0.6605 as long as 0.6540 holds on the downside.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6605 and the second target at 0.6630. In the alternative scenario, short positions are recommended with the first target at 0.6510 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6480. The pivot point is at 0.6540.
Resistance levels: 0.6605 0.6630 0.6675
Support levels: 0.6510 0.6480 0.6415
The material has been provided by InstaForex Company – www.instaforex.com