NZD/USD is expected to consolidate and then rise. The pair failed to break above its nearest resistance at 0.6845 yesterday and is now posting some consolidations. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited by 0.6760, which acts as a strong support and is expected to limit any downside room. In this case, above 0.6760, look for a new rise to 0.6815 and 0.6840 after a pause.
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 0.6815 and the second one, at 0.6840. In the alternative scenario, short positions are recommended with the first target at 0.6730 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 0.6700. The pivot point is at 0.6760.
Resistance levels: 0.6815, 0.6850, 0.6890
Support levels: 0.6730, 0.6700, 0.6665
