NZD/USD is expected to trade with a lower range. Currently trading at 0.6405, the pair remains under pressure below its key resistance at 0.6470 and seems more likely to post a further decline. Moreover, the intraday RSI has confirmed a negative outlook as it has failed to break above the neutrality level at 50. The 20- and 50-period intraday MAs are mixed with a bearish bias. Therefore, as long as 0.6470 holds as the key resistance, look for a new pullback to 0.6365 and 0.6310 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 0.6365. A break of that target will move the pair further downwards to 0.6310. The pivot point stands at 0.6470. 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 0.6505 and the second target at 0.65550.
Resistance levels: 0.6505 0.6550 0.6625
Support levels: 0.6365 0.6310 0.6245
The material has been provided by InstaForex Company – www.instaforex.com