We will retain our yesterday’s negative outlook of the pair. NZD/USD is still under pressure and expected to trade in a lower range. The technical outlook of the pair is negative as the price broke below the lower boundary of Bollinger Bands. The declining 50-period moving average suggests that the pair has a potential for a further downside. The relative strength index shows downward momentum.
Hence, below 0.7460, look for a new test to 0.7380 and even to 0.7350 in extension.
Strategy: SELL Stop Loss: 0.7475 Take Profit: 0.7380
The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it remains below the pivot point, it will indicate the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7495, 0.7525, and 0.7575
Support levels: 0.7380, 0.7350, and 0.7300
The material has been provided by InstaForex Company – www.instaforex.com