Technical Analysis of NZD/USD for April 19, 2016
NZD/USD is expected to continue its upside movement. The pair remains on the upside, supported by its rising 20-period and 50-period moving averages. The sequence of higher highs and lows remains intact. Besides, the relative strength index is bullish above its ascending trend line. Hence, as long as 0.6935 is not broken, the pair is likely to challenge its nearest resistance at 0.7030 in sight. If a breakout occurs, look for further advance to 0.7065.
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 0.7030 and the second one, at 0.7065. In the alternative scenario, short positions are recommended with the first target at 0.6905 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 0.6875. The pivot point is at 0.6935.
Resistance levels: 0.7030, 0.7065, 0.7135
Support levels: 0.6905, 0.6875, 0.6840