NZD/USD is under pressure now and is expected to trade with a bearish bias. The pair keeps testing the first downside target at 0.6600 after its plunge seen on Friday's night. Currently, the bearish bias is maintained by the descending 20- and 50-period moving averages. The relative strength index, while pointing up, still stays below the neutrality level of 50. A breakout below the level of 0.6600 would trigger a further decline toward the next support level of 0.6570.
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 0.6600. A break of that target will move the pair further downwards to 0.6570. The pivot point stands at 0.6680. 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 0.6720 and the second target at 0.6750.
Resistance levels: 0.6720, 0.6750, 0.6775 Support levels: 0.6600, 0.6570, 0.6555
