Technical Analysis of NZD/USD for May 04, 2016
NZD/USD is expected to trade in a lower range as the key resistance is at 0.6945. The pair remains under pressure below its horizontal resistance at 0.6945. The relative strength index stays below its neutrality area at 50 and lacks upward momentum. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited by its key resistance at 0.6945. Below 0.6945, the risk of a slide below 0.6860 remains high. Our next down target is set at 0.6830.
Trading recommendations:
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 0.6860. A break of this target will move the pair further downwards to 0.6830. The pivot point stands at 0.6945. 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 0.6980 and the second target at 0.7020.
Resistance levels: 0.6980, 0.7020, 0.7055
Support levels: 0.6860, 0.6830, 0.6795
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