NZD/USD is expected to trade in a lower range as the key resistance is at 0.6465. Despite yesterday’s technical rebound, the pair remains under pressure below its key resistance at 0.6465. The upward potential is likely to be limited by this threshold. Furthermore, the 50-period moving average is still declining, which suggests that the downside prevails. In this case, as long as 0.6465 holds on the upside, look for a new pullback to test 0.6365 (the previous swing low). In case of a breakout, further drop is likely to be towards 0.6335.
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 0.6365. A break of that target will move the pair further downwards to 0.6335. The pivot point stands at 0.6465. 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 0.6510 and the second target at 0.6540.
Resistance levels: 0.6510, 0.6540, 0.6575
Support levels: 0.6365, 0.6335, 0.63
The material has been provided by InstaForex Company – www.instaforex.com