NZD/USD is expected to trade in a higher range as the movement is supported by a rising trend line. The pair has been riding a bullish trend line since May 19, which confirmed a positive outlook. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index is mixed to bullish.
To conclude, as long as 0.6980 holds on the downside, look for a new advance to 0.7080 and even to 0.7095 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 0.7080 and the second one at 0.7095. In the alternative scenario, the short position is recommended with the first target at 0.6960 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 0.6930. The pivot point is at 0.6980.
Resistance levels: 0.7080, 0.7095, and 0.7135
Support levels: 0.6960, 0.6930, and 0.6900
The material has been provided by InstaForex Company – www.instaforex.com