Technical Analysis of NZD/USD for May 24, 2016
NZD/USD is expected to trade in a lower range as a bias remain bullish. The pair has struck against its key resistance at 0.6670 yesterday, and is turning down. At the same time, the relative strength index is below its neutrality area at 50 and is calling for caution. In conclusion, as long as 0.6670 is not surpassed, a new pullback seems to be on the cards to 0.6675 and 0.6650 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 0.6675. A break of this target will move the pair further downwards to 0.6650. The pivot point stands at 0.6770. 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 0.6805 and the second target at 0.6840.
Resistance levels: 0.6805, 0.6840, 0.6890
Support levels: 0.6675, 0.6650, 0.6600
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