NZD/USD is expected to trade with bearish bias. The pair remains on the downside and is likely to post a further decline as the intraday RSI is still bearish below its neutrality level of 50. A strong resistance at 0.6515 keeps prices under the selling pressure. Moreover, the declining 50-period MA acts as a resistance. In this case, as long as 0.6515 is not surpassed, look for a choppy price action with a bearish bias. Our next downside targets are set at 0.6425 and 0.6365 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 0.6425. A break of that target will move the pair further downwards to 0.6365. The pivot point stands at 0.6515. 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 0.6580 and the second target at 0.66.
Resistance levels: 0.6580 0.66 0.6675
Support levels: 0.6425 0.6365 0.63
The material has been provided by InstaForex Company – www.instaforex.com