NZD/USD is expected to trade in a lower range. The pair has been capped by its descending 20-period and 50-period moving averages since June 10 and is likely to challenge its nearest support at 0.7030. Meanwhile, the relative strength index stays below its neutrality area at 50 and calls for further decline. To sum up, as long as 0.7120 is not surpassed, the risk of a slide below 0.7030 remains high. Our next down target is set at 0.6980.
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 0.6980. A break of this target will move the pair further downwards to 0.6940. The pivot point stands at 0.7120. 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 0.7150 and the second one at 0.7185.
Resistance levels: 0.7150, 0.7185, 0.7230
Support levels: 0.6980, 0.6940, 0.69