NZD/USD is expected to trade in a lower range as the pair is turning down. The pair has failed to hold above the support of its 50-period MA. The 20-period MA is about to cross below the 50-period one, which should confirm a negative outlook. Besides, the intraday RSI is bearish, without showing any signals of reversal. As long as the intraday resistance at 0.64 is not surpassed, further consolidations seem more likely to occur towards 0.6310.
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 0.6310. A break of that target will move the pair further downwards to 0.6290. The pivot point stands at 0.64. 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 0.6410 and the second target at 0.6435.
Resistance levels: 0.6415 0.6435 0.6475
Support levels: 0.6310 0.6290 0.6250
The material has been provided by InstaForex Company – www.instaforex.com