Technical Analysis of NZD/USD for May 05, 2016
NZD/USD is under pressure. The pair remains under pressure below its key resistance at 0.6945. Even though a technical rebound cannot be ruled out at the current stage, its extent should be very limited. Besides, both the 20-period and 50-period moving averages are still heading downward, which should confirm a bearish outlook. The relative strength index is still below its neutrality area at 50. Hence, as long as 0.6945 holds on the downside, look for a new pullback to 0.6860 and 0.6830 in extension.
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
The material has been provided by InstaForex Company - www.instaforex.com