Technical Analysis of NZD/USD for May 19, 2016
NZD/USD is under pressure. The pair has struck against its key resistance at 0.6775 and is turning down now. Both the 20-period and 50-period moving averages are heading downward, which should call for a new pullback. Besides, the relative strength index lacks upward momentum. Hence, as long as 0.6775 holds on the upside, look for a return to 0.6700 and 0.6680 in extension.
Trading recommendations:
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 0.67. A break of this target will move the pair further downwards to 0.6680. The pivot point stands at 0.6775. 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 0.6815 and the second target at 0.6840.
Resistance levels: 0.6815, 0.6840, 0.6890
Support levels: 0.6700, 0.6680, 0.6625
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