NZD/USD is expected to trade in a lower range and move toward 0.6540. A rebound from the low of 0.6541 is losing steam, while the bearish bias is maintained by the descending 50-period moving average. The relative strength index is badly directed within the selling area between 50 and 30. A breakout below the downside target at 0.6540 would trigger a further decline toward 0.6505 (a level of over-lapping support and resistance seen on February 2).
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 0.6540. A break of this target will move the pair further downwards to 0.6505. The pivot point stands at 0.6610. 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 0.6640 and the second target at 0.6680.
Resistance levels: 0.6640, 0.6680, 0.6710
Support levels: 0.6540, 0.6505, 0.6475