NZD/USD is expected to extend its upside movement. The pair shows further upside potential after the upward breakout of its declining trend line, which emerged on Nov 17. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50. As long as 0.7025 is support, look for a further upside toward 0.7010 and 0.7140 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 0.7110 and the second one at 0.7140. In the alternative scenario, short positions are recommended with the first target at 0.6990 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6955. The pivot point lies at 0.7025.
Resistance levels: 0.7110, 0.7140, 0.7180
Support levels: 0.6990, 0.6955, 0.6875
