Technical Analysis of NZD/USD for April 20, 2016
NZD/USD is expected to trade with further gains. The pair remains on the upside, backed by its rising 20-period and 50-period moving averages. The uptrend is strong and solid, as the relative strength index stands firmly above its neutrality area at 50, without showing any reversal signals. To sum up, as long as 0.6955 holds on the downside, look for further advance to 0.7030 and 0.7065 in extension.
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 0.6935 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 0.6905. The pivot point is at 0.6955.
Resistance levels: 0.7030, 0.7065, 0.7135
Support levels: 0.6905, 0.6905, 0.6875
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