Technical analysis of NZD/USD for May 12, 2017

NZD/USD is under pressure. The pair is trading below its key resistance at 0.6880, which should limit the upside potential. The relative strength index below its neutrality level at 50 and lacks upward momentum.

As long as the key level at 0.6880 holds on the upside, look for a further drop towards 0.6800 and even 0.6775 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 0.6800. A break below this target will move the pair further downwards to 0.6775. The pivot point stands at 0.6860. 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 0.6880 and the second one at 0.6915.

Resistance levels: 0.6880, 0.6915, and 0.6950

Support levels: 0.6800, 0.6775, and 0.6730

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

Source:: Technical analysis of NZD/USD for May 12, 2017