NZD/USD is under pressure. The pair clearly reversed down, and is now expected to challenge its support at 0.6615 in sight. The falling 20-period and 50-period moving averages play resistance roles, and should continue to push the prices lower. Last but not least, the relative strength index is still below its neutrality area at 50. In which case, as long as 0.6730 is not surpassed, look for a new drop to 0.6615 and 0.6590 in extension.
Trading recommendations:
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 0.6615. A break of this target will move the pair further downwards to 0.6590. The pivot point stands at 0.6730. In case 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 0.6770 and the second target at 0.6815.
Resistance levels: 0.6770, 0.6815, 0.6860
Support levels: 0.6615, 0.6590, 0.6550
Origin: InstaForex
