Technical analysis of NZD/USD for February 21, 2017

NZD/USD is under pressure. The pair is consolidating around its 20-period and 50-period moving averages and is trading below its key resistance at 0.7190, which should limit the upside potential. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. As long as 0.7190 holds on the upside, the pair is likely to return to its next support at 0.7130. A break below this level would call for a further decline toward 0.7110.

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 0.7130. A break below this target will move the pair further downwards to 0.7110. The pivot point stands at 0.7190. 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 0.7235 and the second one at 0.7260.

Resistance levels: 0.7235, 0.7260, and 0.7260

Support levels: 0.7130, 0.7110, and 0.7070

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

Source:: Technical analysis of NZD/USD for February 21, 2017