NZD/USD is expected to trade with a bearish bias and is turning down. The pair failed to hold on to the upside after surging up to 0.7325 yesterday and eventually slumped back to levels below 0.7300. Currently it is trading on the downside while being capped by the descending 20-period moving average, which has crossed below the 50-period one. And the relative strength index is badly directed below 50, calling for further downward momentum for the pair. The immediate support would be found at 0.7219, a break of which could lead to the next support at 0.7175.
Recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7210 and the second one, at 0.7175. In the alternative scenario, short positions are recommended with the first target at 0.7325 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7350. The pivot point is at 0.7300.
Resistance levels: 0.7325, 0.7350, 0.7400
Support levels: 0.7210, 0.7175, 0.7135
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
NZD/USD is expected to trade with a bearish bias and is turning down. The pair failed to hold on to the upside after surging up to 0.7325 yesterday and eventually slumped back to levels below 0.7300. Currently it is trading on the downside while being capped by the descending 20-period moving average, which has crossed below the 50-period one. And the relative strength index is badly directed below 50, calling for further downward momentum for the pair. The immediate support would be found at 0.7219, a break of which could lead to the next support at 0.7175.
Recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7210 and the second one, at 0.7175. In the alternative scenario, short positions are recommended with the first target at 0.7325 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7350. The pivot point is at 0.7300.
Resistance levels: 0.7325, 0.7350, 0.7400
Support levels: 0.7210, 0.7175, 0.7135
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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