NZD/USD is expected to trade with a bullish bias. The pair broke below its 20-period moving average but is still trading above the rising 50-period one, which plays support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.7215 is support, look for a further upside toward 0.7300 and even 0.7335 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 0.7300 and the second one at 0.7335. In the alternative scenario, short positions are recommended with the first target at 0.7175 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 0.7150. The pivot point is at 0.7215.
Resistance levels: 0.7300, 0.7335, 0.7385
Support levels: 0.7175, 0.7150, 0.7115
