NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair is consolidating and has broken below its 20-period moving average. The relative strength index is below its neutrality level at 50. Nevertheless, the rising 50-period moving average is still playing a support role and maintains the upside bias. In addition, 0.6885 is playing a key support role, which should limit the downside potential.
As long as 0.6885 is support, look for a technical rebound toward 0.6940 and even 0.6955 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 0.6940 and the second one at 0.6955. In the alternative scenario, short positions are recommended with the first target at 0.6870 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 0.6855. The pivot point is at 0.68885.
Resistance levels: 0.6940, 0.6955, and 0.6970
Support levels: 0.6870, 0.6855, and 0.6800
