NZD/USD is under pressure. The pair broke below a bullish trendline and accelerated on the downside, which confirmed a negative outlook. The rising 20-period and 50-period moving averages play resistance roles and maintain the downside bias. The relative strength index is bearish below its neutrality level at 50 and lacks upward momentum. As long as 0.7240 holds on the upside, look for a further downside to 0.7170 and even 0.7150 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 0.7170. A break below this target will move the pair further downwards to 0.7150. The pivot point stands at 0.7240. If 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 0.7260 and the second one at 0.7280.
Resistance levels: 0.7260, 0.7280, and 0.7310
Support levels: 0.7170, 0.7150, and 0.7105
The material has been provided by InstaForex Company – www.instaforex.com