NZD/USD is expected to trade in a lower range. The pair yesterday broke below its intraday trading range pattern, which should confirm a bearish outlook. The 20-period simple moving average is also turning down, and crossed below the 50-period one. Besides, the relative strength index is badly directed, and is calling for a new drop. From this viewpoint, as long as 0.6720 is not surpassed, the pair is likely advance to 0.6600 and 0.6570 in extension.
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 this target will move the pair further downwards to 0.6570. The pivot point stands at 0.6720. 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 0.6780 and the second target at 0.6820.
Resistance levels: 0.6780, 0.6820, 0.6860
Support levels: 0.66, 0.6570, 0.65
