NZD/USD is expected to stick to its downside movement. The pair broke below its 20-period and 50-period moving averages and is consolidating on the downside. In addition, the 20-period moving average crossed below the 50-period one, which is negative. The relative strength index is bearish below the level of 30 and lacks upward momentum. In conclusion, as long as 0.7240 is resistance, look for a further drop towards 0.7175 and even 0.7150 in extension.
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 0.7175. A break below this target will move the pair further downwards to 0.7150. The pivot point stands at 0.7240. If 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 0.7280 and the second one at 0.7310.
Resistance levels: 00.7280, 0.7310, and 0.7375
Support levels: 0.7175, 0.7150, and 0.7100
