NZD/USD is expected to trade in a higher range as there is bullish bias above 0.6310. The pair has entered a consolidation after striking against the first upside target at 0.6380 repeatedly. Meanwhile, a key support level has been formed at 0.6310 and should limit downside potential. If 0.6380 is finally broken, the pair is expected to proceed to the second upside target at 0.6400 (last seen on September 9).
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6380 and the second target at 0.64. In the alternative scenario, short positions are recommended with the first target at 0.6290 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6250. The pivot point is at 0.6310.
Resistance levels: 0.6380 0.64 0.6425
Support levels: 0.6290 0.6250 0.6230
The material has been provided by InstaForex Company – www.instaforex.com