NZD/USD is Under pressure. The pair is trading below its decreasing 50-period and 20-period moving averages, which play resistance roles and keep the downside predisposition. The relative strength index is listed below its neutrality level at 50 and does not have upward momentum. Additionally, 0.7040 is playing a crucial resistance role, which should limit the upside capacity. As long as 0.7040 holds on the upside, try to find a further drop towards 0.6950. A break listed below this level would call for a further decrease toward 0.6920.
The set is trading below its pivot point. It is likely to trade in a lower range as long as it stays listed below the pivot point. Short positions are suggested with the first target at 0.6950. A break listed below this target will move the set further downwards to 0.6920. The pivot point stands at 0.7040. In case the rate relocations in the opposite direction and recuperates from the assistance level, it will move above its pivot point. It is likely to move even more to the upside. Inning accordance with that circumstance, long positions are advised with the very first target at 0.7090 and the second one at 0.7110.
Resistance levels: 0.7090, 0.7110, 0.7140
Assistance levels: 0.6850, 0.6920, 0.6885
The material has been offered by InstaForex Company –