NZD/USD is expected to trade with bearish outlook as the pair is capped by a negative trend line. The pair is capped by a negative trend line since April 24, which confirms a negative outlook. The downward momentum is further reinforced by a declining 50-period moving average. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
Therefore, as long as 0.6940 is not surpassed, look for a further drop to 0.6885 and even to 0.6840 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 0.6925. A break below this target will move the pair further downwards to 0.6905. The pivot point stands at 0.6985. 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 0.7005 and the second one at 0.7020.
Resistance levels: 0.6970, 0.7000, and 0.7020
Support levels: 0.6885, 0.6840, and 0.6800
