NZD/USD is expected to trade with a bearish bias. Despite yesterday’s technical rebound, the pair is still capped by its declining 50-period MA, and also remains under pressure below its key resistance at 0.6710. An intraday outlook is negative, as the RSI indicator stays weak below its neutrality area of 50. Hence, as long as 0.6740 holds on the upside, watch a new pullback towards 0.6615 and 0.6585.
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 breakout of that target will move the pair further downwards to 0.6585. The pivot point stands at 0.6710. 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 0.6740 and the second target at 0.6775.
Resistance levels: 0.6740 0.6775 0.6805 Support levels: 0.6615 0.6585 0.6520
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