NZD/USD is expected to trade in a lower range as the key resistance is at 0.6910. Although the pair made a rebound from 0.6845 (the low of April 27), it is still trading below the declining 50-period moving average, which plays a resistance role. The upside potential should be limited by the key resistance at 0.6910. Even though a continuation of a technical rebound cannot be ruled out, its extents will be limited.
To sum up, below 0.6910, look for a return to 0.6845 and even to 0.6810 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 0.6845. A break below this target will move the pair further downwards to 0.6810. The pivot point stands at 0.6910. 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 0.6940 and the second one at 0.6970.
Resistance levels: 0.6940, 0.6970, and 0.7000
Support levels: 0.6845, 0.6810, and 0.6760
