NZD/USD is expected to post some further upside gains. The pair is holding on the upside after the bullish breakout of its 20-period moving average. At the same time, the rising 50-period moving average is playing a support role and should push the prices higher. In addition, a support base at 0.7245 has been formed, and the downside attempts should be limited by this level. To conclude, as long as 0.7245 holds on the downside, look for further advance to 0.7315 and even to 0.7340 in extension.
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 0.7315 and the second one at 0.7340. In the alternative scenario, short positions are recommended with the first target at 0.7220 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 0.7200. The pivot point lies at 0.7245.
Resistance levels: 0.7315, 0.7340, 0.7370
Support levels: 0.7220, 0.7200, 0.7175
