NZDUSD continues to trade inside a trading range since mid January. The upper boundary resistance is found at 0.7230 area and the lower range boundary support is at 0.71. As we have explained in previous posts our longer-term view remains slightly bearish because of the weakening momentum of the bullish trend.
NZDUSD is trading at 0.7140 today near the lower trading range boundary. Being close to key support gives short-term traders the opportunity to try a bullish trade. More conservative traders would prefer to stay neutral and see how price reacts near this key support level. If support at 0.71 fails to hold we expect price to reach 0.68-0.69. If resistance at 0.7230 is broken we expect price to move to new highs towards 0.74.
