NZD/USD is expected to trade with the overall upward movement. The pair has been supported by a rising trend line since June 17 and remains on the upside. Meanwhile, both the 20-period and 50-period moving averages are playing support roles. Further upside is therefore expected with the next horizontal resistance at 0.7145 at first. In addition, the relative strength index calls for a new rise. To sum up, a break above 0.7065 would trigger a new bounce toward 0.7145.
Recommendation:
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 0.7145 and the second one at 0.7170. In the alternative scenario, short positions are recommended with the first target at 0.7035 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 0.7005. The pivot point is at 0.7065.
Resistance levels: 0.7145, 0.7170, 0.72
Support levels: 0.7035, 0.7005, 0.6970
