Technical Analysis of NZD/USD for April 29, 2016
NZD/USD is expected to trade in a higher range as the bias remains bullish. The pair stands firmly above its support at 0.6930 and remains on the upside. The 50-period moving average is also playing a support role and maintains a positive bias. Meanwhile, the relative strength index is mixed to bullish. Even though a consolidation cannot be ruled out, its extent should be limited. In this case, as long as 0.6930 holds on the downside, we expect a new rebound to 0.7005 after a limited consolidation.
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 0.7005 and the second one, at 0.7030. In the alternative scenario, short positions are recommended with the first target at 0.6890 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 0.6865. The pivot point is at 0.6935.
Resistance levels: 0.7005, 0.7030, 0.7060
Support levels: 0.6890, 0.6865, 0.6835
The material has been provided by InstaForex Company - www.instaforex.com