NZD/USD is under pressure. The pair retreated from the key resistance at 0.7175 and broke below its 20-period and 50-period moving averages. Additionally, the 20-period moving average is turning down. The relative strength index is bearish, calling for a further decline.
Therefore, below 0.7175 expect a new drop to 0.7100 and even to 0.7075 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 0.7100. A break below this target will move the pair further downwards to 0.7075. The pivot point stands at 0.7175. 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 0.7205 and the second one at 0.7235.
Resistance levels: 0.7205, 0.7230, and 0.7280
Support levels: 0.7100, 0.7075, and 0.7030
The material has been provided by InstaForex Company – www.instaforex.com