NZD/USD is expected to trade in a lower range as the pair is capped by a negative trend line. Despite the recent rebound, the pair is still holding on the downside, capped by a descending trend line since September 22. The downward momentum is further reinforced by its falling 50-period moving average, which should continue to push the prices lower. Besides, the relative strength index is below its neutrality area at 50 and lacks upward momentum. To sum up, as long as 0.7320 is not surpassed, the pair is likely to drop to 0.7250, if breakout, look for a further downsides to 0.7235.
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 0.7250. A break below this target will move the pair further downwards to 0.7235. The pivot point stands at 0.7320. 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 0.7340 and the second one, at 0.7370.
Resistance levels: 0.7340, 0.7370, 0.7405
Support levels: 0.7250, 0.7235, 0.720
