NZD/USD is expected to trade with a bearish bias. The pair reversed down and is now trading within a declining channel. Both the 20-period and 50-period moving averages are also turning down, calling for further consolidations. In addition, the relative strength index is still bearish, without showing any reversal signals. To sum up, as long as 0.6995 holds on the upside, look for a new pullback to 0.6935 and 0.6890 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 0.6935. A break of this target will move the pair further downwards to 0.6890. The pivot point stands at 0.6995. 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 0.7030 and the second target at 0.7065.
Resistance levels: 0.7030, 0.7065, 0.7135
Support levels: 0.6935, 0.6890, 0.6855
