Our first target which we predicted in yesterday’s analysis has been hit. NZD/USD is still expected to trade with bullish bias above 0.6920. Although the pair posted a pullback, a support base at 0.6920 has formed and has allowed for a temporary stabilization. The rising 50-period moving average is playing a support role. The relative strength index has landed on the neutrality level at 50 and is turning up.
Hence, as long as 0.6920 holds on the downside, look for a further upside with targets at 0.6995 and 0.7020 in extension.
The black line shows the pivot point. Currently, the price is above the pivot point, which is the signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels and the green line is indicating the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.6995, 0.7020, and 0.7040
Support levels: 0.6895, 0.6870, and 0.6835
The material has been provided by InstaForex Company – www.instaforex.com