NZD/USD is expected to trade in a lower range. The pair has broken below a rising trendline (since July 24, 2015) confirming a negative outlook. Furthermore, the 20-period and 50-period intraday MAs are declining and act as resistances. Also, the intraday RSI indicator is below its neutrality area at 50 and lacks upward momentum. As long as 0.6690 holds on the upside, look for further downside to 0.6540 and even 0.65 in extension is expected. Only a break above of 0.6660 would turn the outlook to positive and calls for a technical rebound to 0.6740.
Technical comment: The price is trading below 20- and 50-period moving average. RSI is well directed downward.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.6540. A break of that target will move the pair further downwards to 0.65. The pivot point stands at 0.666. 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, a long position is recommended with the first target at 0.6690and the second target at 0.6740.
Resistance levels: 0.6690 0.6740 0.6770
Support levels: 0.6540 0.65 0.6465
The material has been provided by InstaForex Company – www.instaforex.com