Technical analysis of NZD/USD for March 16, 2017
NZD/USD is expected to trade with a bearish bias below 0.7030. Although the pair retreated from 0.7050 (the high of March 15), the price is trading below the key support level at 0.7030, which should limit the downside potential. The declining 20-period and 50-period moving averages play resistance roles and maintain the bearish bias. The relative strength index is below its neutrality level at 50.
Hence, as long as 0.7030 is not broken, look for a retreat to 0.6950. A break below this level would call for a new decline to 0.6930.
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 0.6950. A break below this target will move the pair further downwards to 0.6930. The pivot point stands at 0.7030. 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 0.7050 and the second one at 0.7070.
Resistance levels: 0.7050, 0.7070, and 0.7100
Support levels: 0.6950, 0.6930, and 0.6885
The material has been provided by InstaForex Company – www.instaforex.com