NZD/USD Intraday: Further advance. The pair is rebounding and broke above its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50%. On the forex front, the US dollar softened against other major currencies as traders focused on decisions to be made by the US Federal Reserve and the Bank of Japan later this week. Further bounce is therefore expected with 0.7065 and 0.7090 as the next targets.
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 0.7065 and the second one, at 0.7090. In the alternative scenario, short positions are recommended with the first target at 0.6950 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 0.6920. The pivot point is at 0.6970.
Resistance levels: 0.7065, 0.7085, 0.7125
Support levels: 0.6950, 0.6920, 0.6875
