NZD/USD is expected to continue its bounce. The pair has crossed above its 20-period and 50-period moving averages, while the relative strength index is positively oriented. As long as 0.6975 is not broken below, a further pullback is expected with 0.7020 as the next target.
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 0.7020 and the second one at 0.7040. In the alternative scenario, short positions are recommended with the first target at 0.6965 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 0.6945. The pivot point is at 0.6975.
Resistance levels: 0.7020, 0.7040, 0.7075
Support levels: 0.6965, 0.6945, 0.6925
