NZD/USD is expected to trade in a lower range. The pair has reversed downwards and is now under pressure below its 20- and 50-period MAs. The intraday RSI is rebounding on its support level at 30, but it lacks upward momentum. As long as 0.6685 holds on the upside, the pair seems more likely to test its nearest support at 0.6450 (a horizontal level). In case of breakout, look for 0.6425 in extension.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6450. A break of that target will move the pair further downwards to 0.6425. The pivot point stands at 0.6560. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6650 and the second target at 0.6685.
Resistance levels: 0.6650 0.6685 0.6745
Support levels: 0.6450 0.6425 0.6375
The material has been provided by InstaForex Company – www.instaforex.com