NZD/USD is expected to continue the upside movement. The rising 20- and 50-period moving averages are providing support to the pair. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. A support base has formed around 0.6535, which should limit the downside potential. As long as 0.6535 is support, look for a further upside toward 0.6615 and 0.6640 in extension.
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 0.6615 and the second target at 0.6640. In the alternative scenario, short positions are recommended with the first target at 0.6490 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 0.6460. The pivot point is at 0.6535.
Resistance levels: 0.6615 0.6640 0.6675
Support levels: 0.6490 0.6460 0.6430
