Technical Analysis of NZD/USD for April 05, 2016
NZD/USD is expected to trade with a bearish bias. From a chartist view, the pair remains on the downside, capped by its declining 20-period and 50-period moving averages. The relatively strong index is mixed with bearish, calling for a new pullback. Besides, the nearest resistance around 0.6885 maintains the strong selling pressure on the prices. To sum up, the risk is now a slide below 0.6775, which would trigger a further decline to 0.6725.
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 0.6775. A break of this target will move the pair further downwards to 0.6725. The pivot point stands at 0.6885. 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 0.6925 and the second target at 0.6965.
Resistance levels: 0.6925, 0.6965, 0.7030
Support levels: 0.6775, 0.6725, 0.6675
The material has been provided by InstaForex Company - www.instaforex.com