NZD/USD is expected to trade with a bullish bias above 0.6985. Although the pair retreated from 0.7035 (the high of April 17), it is still trading above its key support at 0.6995, which could have limited the downside potential. Even though the continuation of the consolidation cannot be ruled out, its extent is likely to be limited.
Hence, as long as 0.6985 holds on the downside, look for a rebound to 0.7035. A break above this level would trigger a new rise to 0.7060.
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 0.7035 and the second one at 0.7060. In the alternative scenario, short positions are recommended with the first target at 0.6930, 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 0.6910. The pivot point is at 0.6950.
Resistance levels: 0.7035, 0.7060, and 0.7080
Support levels: 0.6960, 0.6940, and 0.6910
