NZD/USD is expected to trade in a higher range as a bias remains bullish. The pair is trading below its 20- and 50-period moving averages. The relative strength index is below its neutrality level of 50. Nevertheless, a support base was formed around 0.6535, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extension should be limited. As long as 0.6535 holds as the key support, watch for a technical rebound toward 0.6605 and 0.6640.
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 0.6605 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: 0.6605 0.6640 0.6675
Support levels: 0.6490 0.6460 0.6430
