Technical Analysis of NZD/USD for May 02, 2016
NZD/USD is expected to post further advance. The pair remains on the upside within a bullish channel, and it is more likely to challenge its nearest resistance at 0.7025 in the coming trading hours. The horizontal support at 0.6930 should limit any downward attempts. In addition, the relative strength index is still bullish above its neutrality area at 50. To sum up, as long as 0.6930 is not broken, pair is likely to advance to 0.7025 and 0.7055 in extension.
Trading recommendations:
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 0.7025 and the second one, at 0.7055. In the alternative scenario, short positions are recommended with the first target at 0.6890 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 0.6865. The pivot point is at 0.6930.
Resistance levels: 0.7025, 0.7055, 0.71
Support levels: 0.6890, 0.6865, 0.6835
The material has been provided by InstaForex Company - www.instaforex.com
