Technical Analysis of NZD/USD for May 06, 2016
NZD/USD is expected to trade in a lower range as the pair is under pressure. The pair remains under pressure below its horizontal resistance at 0.6920. Both the 20-period and 50-period moving averages are playing resistance roles as well. At the same time, the relative strength index stays below its neutrality area at 50 and lacks upward momentum. Below 0.6920, the risk of a slide below 0.6830 remains high. Our next down target is set at 0.6800.
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 0.6830. A break of this target will move the pair further downwards to 0.6800. The pivot point stands at 0.6920. 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 0.6945 and the second target at 0.6980.
Resistance levels: 0.6945, 0.6980, 0.7020
Support levels: 0.6830, 0.6830, 0.6795
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