NZD/USD is under pressure. The pair has failed to break above the horizontal resistance at 0.7085 and remains weak below the threshold. Meanwhile, both the 20-period and 50-period moving averages are heading downward. Even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be limited. To sum up, as long as 0.7085 holds as the key resistance, the pair is likely to return to 0.6970 at first and then to 0.6930.
Recommendation:
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 0.6970. A break below this target will move the pair further downwards to 0.6930. The pivot point stands at 0.7085. 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 0.7150 and the second one, at 0.72.
Resistance levels: 0.7150, 0.72, 0.7245
Support levels: 0.6970, 0.6930, 0.6815
