NZD/USD is expected to prevail its upside movement. The pair is trading above its rising 50-period moving average, which plays a support role and maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. In addition, the downside potential should be limited by the key support level at 0.7015.
To sum up, as long as this key level holds on the downside, expect a further rise to 0.7070 and even to 0.7085 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 0.7070 and the second one at 0.7085. In the alternative scenario, short positions are recommended with the first target at 0.7000 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6975. The pivot point is at 0.7015.
Resistance levels: 0.7070, 0.7085, and 0.7110
Support levels: 0.7000, 0.6975, and 0.69655
