NZD/USD is expected to trade in a lower range as it is capped by a negative trend line. The pair has been capped by a descending trend line since June 13 and remains on the downside. At the same time, both the 20-period and 50-period moving averages are heading downward. Last but not least, the sequence of lower highs and lows remains intact on the prices, which should confirm a negative outlook. The first target to the downside is therefore set at 0.6940. A break below this level would open the way to further weakness toward 0.6890.
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 0.6970. A break of this target will move the pair further downwards to 0.6940. The pivot point stands at 0.7060. 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 0.7090 and the second one at 0.7120.
Resistance levels: 0.7090, 0.7120, 0.7150
Support levels: 0.6970, 0.6940, 0.69