NZD/USD is under pressure. The pair remains capped by a negative trend line and is also under pressure below its major resistance at 0.6595. Both the 20-period and 50-period moving averages are turning down, calling for a new decline to 0.6545 and 0.65 in extension. Furthermore, the relative strength index has struck against its falling resistance and lacks upward momentum. To sum up, expect a return towards 0.650 below 0.6595.
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 0.6545. A break of that target will move the pair further downwards to 0.65. The pivot point stands at 0.6595. 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 0.6635 and the second target at 0.6675.
Resistance levels: 0.6635, 0.6675, 0.6705
Support levels: 0.6545, 0.65, 0.6445
