NZD/USD is expected to trade in a lower range. The pair stays below its key resistance at 0.6390 and is expected to look for a lower bottom in the forthcoming sessions. The 20-period intraday MA is below its 50-period one, calling for further downside as well. And the intraday RSI lacks strong upward momentum. The first target to the downside is therefore set at the horizontal support and overlap at yesterday’s low at 0.62855. A break below this level would open the way to further weakness towards 0.6240 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 0.6285. A break of that target will move the pair further downwards to 0.6240. The pivot point stands at 0.390. 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: 0.6285 0.6240 0.62
The material has been provided by InstaForex Company – www.instaforex.com