Technical Analysis of NZD/USD for May 12, 2016
NZD/USD is expected to trade with a bullish bias above 0.6790. The pair remains on the upside, backed by its rising 50-period moving average, which now acts as a support role, and should maintain a positive bias. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. Hence, as long as 0.6790 is not broken, look for further upsides to 0.6860 and 0.6890 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 0.6860 and the second one, at 0.6890. In the alternative scenario, short positions are recommended with the first target at 0.6765 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 0.6740. The pivot point is at 0.6790.
Resistance levels: 0.6860, 0.6890, 0.6920
Support levels: 0.6765, 0.6740, 0.67