NZD/USD is expected to rise further. The pair reversed up yesterday and can continue its rebound, as the relative strength index is heading upward, which should call for further advance. Additionally, a bullish cross between the 20-period and 50-period moving averages has been identified (a positive signal). In this case, as long as our trailing stop loss at 0.6620 is not broken, look for 0.6685 and 0.6725 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. Therefore, long positions are recommended with the first target at 0.6685 and the second one at 0.6725. In the alternative scenario, short positions are recommended with the first target at 0.6580 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 0.6560. The pivot point is at 0.6620.
Resistance levels: 0.6685, 0.6725, 0.6755
Support levels: 0.6580, 0.6560, 0.6525
