Technical analysis of NZD/USD for December 31, 2015

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NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair is supported by its 50-period moving average and stands above its key support at 1.3845. Meanwhile, the relative strength index lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6885. A break above this level would call for a further advance toward 0.6920.

Trading recommendations:

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, it is recommended to open long positions with the first target at 0.6885 and the second target at 0.6920. In the alternative scenario, it is recommended to open short positions with the first target at 0.6805, 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 0.6780. The pivot point is at 0.6825.

Resistance levels: 0.6885, 0.6920, 0.6950

Support levels: 0.6805, 0.6780, 0.6755

The material has been provided by InstaForex Company – www.instaforex.com

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