NZD/USD is expected to trade in a lower range. The pair recorded lower tops and lower bottoms since March 15, which confirmed a negative outlook. The 50-period moving average is turning down and is playing a resistance role. The relative strength index is mixed to bearish.
To sum up, as long as 0.7030 holds on the upside, a further downside to 0.6965 (the previous low) seems more likely to occur. A break below this level would trigger a new drop to 0.6945.
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 0.6965. A break below this target will move the pair further downwards to 0.6945. 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: 0.6965, 0.6945, and 0.6890
The material has been provided by InstaForex Company – www.instaforex.com