NZD/USD is expected to move downwards. The pair is trading along the lower Bollinger band, with the relative strength index being badly placed within the oversold area below the level of 30. While the 20-period moving average, which continues to stay below the 50-period one, is maintaining a bearish bias, the pair is on its down path to the first downside target at 0.6570, and in extension to 0.6510 (a level of over-lapping support and resistance on February 1-3).
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 0.6570. A break of that target will move the pair further downwards to 0.6510. The pivot point stands at 0.6640. 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 0.6680 and the second target at 0.6720.
Resistance levels: 0.6680, 0.6720, 0.6750
Support levels: 0.6570, 0.6510, 0.6460
