NZD/USD is expected to trade with a bearish bias. The pair remains under pressure below its nearest resistance at 0.65 challenging its major support at 0.6445. The risk of a breakout below this threshold remains high as the intraday 20-period and 50-period moving averages are heading downwards, and should call for a new decline. Hence, as long as 0.65 holds on the upside, a further drop towards 0.6420 seems to be on the cards.
Trading recommendations:
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 0.6445. A break of that target will move the pair further downwards to 0.6420. The pivot point stands at 0.6500. In case 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 0.6545 and the second target at 0.6575.
Resistance levels: 0.6545 0.6575 0.6590 Support levels: 0.6445 0.6420 0.6370
