NZD/USD is expected to trade with a bearish outlook. The pair broke below its former key support at 0.7370, which becomes a key resistance now, and is consolidating on the downside. The relative strength index is below its neutrality level at 50 and lacks upward momentum. The declining 50-period moving average is playing a resistance role and maintains the downside bias.
As long as 0.7370 holds on the upside, look for a further drop towards 0.7315 and even 0.7295 in extension.
Strategy: SELL Stop Loss: 0.7370 Take Profit: 0.7315
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates 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: 0.7400, 0.7440, and 0.7475
Support levels: 0.7315, 0.7295, and 0.7235
The material has been provided by InstaForex Company – www.instaforex.com