Technical Analysis of NZD/USD for April 07, 2016
NZD/USD is expected to trade in a higher range. The pair remains on the upside after overnight's rebound from a low of 0.6800. The bullish bias is maintained by the ascending 20-period moving average. At the same time, the relative strength index is approaching the overbought level of 70 calling for further upside. As long as the rebound continues, the pair should return to the first upside target at 0.6885.
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 0.6885 and the second one, at 0.6925. In the alternative scenario, short positions are recommended with the first target at 0.6770 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 0.6745. The pivot point is at 0.68.
Resistance levels: 0.6885, 0.6925, 0.6965
Support levels: 0.6770, 0.6745, 0.6675
The material has been provided by InstaForex Company - www.instaforex.com