NZD/USD is expected to trade with a bullish bias above 0.7095. The pair remains on the upside. A support base at 0.7095 has formed and allowed for a temporary stabilization. Even though a continuation of consolidation cannot be ruled out at the current stage, its extent should be very limited before a new bounce. In this case, as long as 0.7095 is not broken, further upside is expected with the next horizontal resistance and overlap set at 0.7170 and 0.7200 in extension.
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 0.7170 and the second one at 0.72. In the alternative scenario, short positions are recommended with the first target at 0.7075 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 0.7035. The pivot point is at 0.7095.
Resistance levels: 0.7170, 0.72, 0.7245
Support levels: 0.7075, 0.7035, 0.7005
