NZD/USD is expected to trade in a lower range as bias remains bearish. The pair is currently trading at 0.6347, extending its losses yesterday after the downside breakout of its support. The outlook is still bearish, as the MA for period 50 is negatively oriented, which should indicate that prices may still have potential to move downwards. To sum up, as long as 0.6405 is not surpassed, any technical rebound should be limited before a new drop to 0.6310 takes place and then to the level of 0.6285.
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 0.6310. A break of that target will move the pair further downwards to 0.6285. The pivot point stands at 0.6405. 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 0.6430 and the second target at 0.6470.
Resistance levels: 0.6430 0.6470 0.6505
Support levels: 0.6310 0.6285 0.6215
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