NZD/USD is expected to trade in a lower range. The pair validated an intraday bearish reversal last Friday after the downside breakout of a rising trend-line support. The key resistance at 0.6325 maintains strong selling pressure. Furthermore, both the 20- and 50-period intraday MAs are turning down confirming a negative outlook. The intraday RSI is bearish below 50. As long as 0.6325 is not surpassed, look for further decline to 0.6220 and 0.6190.
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 0.6220. A break of that target will move the pair further downwards to 0.6190. The pivot point stands at 0.6325. 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 0.6350 and the second target at 0.640.
Resistance levels: 0.6350 0.640 0.6430
Support levels: 0.6220 0.610 0.6135
The material has been provided by InstaForex Company – www.instaforex.com