NZD/USD is expected to trade with a bearish bias as key resistance is seen at 0.6305. The pair remains depressed by key resistance at 0.6305, which maintains strong selling pressure. The intraday trend is clear on the downside, as the process of reaching lower highs and lows remains intact. Furthermore, the intraday 20-period and 50-period MAs are still heading downward. Hence, as long as 0.6305 is not surpassed, look for further decline to 0.6260 (the previous swing low). A new pullback to 0.6235 is expecte in case of a breakout.
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 0.6260. A break of that target will move the pair further downwards to 0.6235. The pivot point stands at 0.6305. 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 0.6330 and the second target at 0.6360.
Resistance levels: 0.6330 0.6360 0.6415
Support levels: 0.6260 0.6235 0.6200
The material has been provided by InstaForex Company – www.instaforex.com