Technical analysis of NZD/USD for May 16, 2017

NZD/USD is expected to trade with a bullish bias. The pair posted a rebound and broke above the 20-period and 50-period moving averages. The relative strength index is bullish above the neutrality level at 50 and is calling for a further upside. In addition, the downside potential should be limited by the key support at 0.6855.

To conclude, as long as this key support holds on the downside, expect a new rise to 0.6920 and even to 0.6950 in extension.

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. Therefore, long positions are recommended with the first target at 0.6920 and the second one at 0.6950. In the alternative scenario, short positions are recommended with the first target at 0.6835 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6815. The pivot point is at 0.6855.

Resistance levels: 0.6920, 0.6950, and 0.6970

Support levels: 0.6835, 0.6815, and 0.6775

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

Source:: Technical analysis of NZD/USD for May 16, 2017