NZD/USD is expected to trade in a lower range as the pair is moving downside. The pair remains on the downside. Now it is likely to form a “bearish flag” pattern on an intraday basis. The 50-period MA is turning down, and should continue pushing the prices lower. Besides, the intraday RSI is below its neutrality level of 50 and lacks upward momentum. Therefore, the intraday outlook is negative, as long as the level of 0.6360 acts as resistance. Our next down targets are seen at 0.6290 and 0.6260.
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 0.6290. A break of that target will move the pair further downwards to 0.6260. The pivot point stands at 0.6360. 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 0.6380 and the second target at 0.6415.
Resistance levels: 0.6380 0.6415 0.6.6475
Support levels:0.6290 0.6260 0.6235
The material has been provided by InstaForex Company – www.instaforex.com