NZD/USD is under pressure, as the key resistance lies at 0.6920. The technical picture of the pair is bearish, as the prices are capped by a bearish trend line (since Feb 22). The downward momentum is further reinforced by the declining 50-period moving average. In addition, the upside potential should be limited by a key resistance level at 0.6920.
As long as this level is not surpassed, look for a further decine to 0.6845 and even 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 0.6920. 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
