NZD/USD is Under pressure. The pair recorded lower tops and lower bottoms since May 3, which confirmed a positive outlook. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index is bearish and calls for a further drop.
As long as 0.6920 holds on the upside, a new drop to 0.6860 and even to 0.6835 seems more likely to occur.
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 0.6860. A break below this target will move the pair further downwards to 0.6835. The pivot point stands at 0.6920. 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 0.6940 and the second one at 0.6970.
Resistance levels: 0.6940, 0.6970, and 0.6990
Support levels: 0.6860, 0.6835, and 0.6800
The material has been provided by InstaForex Company – www.instaforex.com