NZD/USD is expected to trade with a bullish outlook. The pair has bounced up from another test of support at 0.6900, which is playing a key support role and should limit the downside potential. The prices broke above its 20-period and 50-period moving averages with strong momentum. In addition, the relative strength index is above its neutrality level at 50 and lacks downward momentum.
As long as 0.6890 holds on the downside, look for a further advance 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 0.6890.
Resistance levels: 0.6940, 0.6955, and 0.6970
Support levels: 0.6870, 0.6855, and 0.6800
