NZD/USD is expected to trade in a higher range as the bias remains bullish. After the recent rallies, the pair is now posting some consolidations, but it is likely to be forming an intraday "bullish flag" pattern (not yet confirmed). The 50-period MA is heading upward and acts as strong support. Furthermore, the key horizontal support around 0.6550 should limit any downward attempts. Hence, as long as 0.6550 is not broken, consolidation should be limited before a new bounce to 0.6650 (September 7 high) takes place, and then to 0.6680.
Trading recommendations:
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. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6650 and the second target at 0.6680. In the alternative scenario, short positions are recommended with the first target at 0.6515 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6475. The pivot point is at 0.6550.
Resistance levels: 0.6650 0.6680 0.6730 Support levels: 0.6515 0.6475 0.6445
