Technical Analysis of NZD/USD for March 08, 2016
NZD/USD is expected to trade with a bullish bias above 0.6730. Trading at 0.6769, the pair remains in consolidation, but still holds above its key support at 0.6730, which is expected to limit any room downside. The relative strength index lacks downward momentum. Therefore, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 0.6735 holds on the downside, look for further advance to 0.6820 and 0.6860 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 0.6820 and the second one at 0.6860. In the alternative scenario, short positions are recommended with the first target at 0.6695 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 0.6640. The pivot point is at 0.6730.
Resistance levels: 0.6820, 0.6860, 0.69
Support levels: 0.6695, 0.6640, 0.6590
The material has been provided by InstaForex Company - www.instaforex.com
