Technical Analysis of NZD/USD for April 06, 2016
NZD/USD is under pressure and expected to trade in a lower range. The pair remains under pressure below its key resistance at 0.6850, and is likely to challenge its nearest support at 0.6755 (April 5 low). The risk of a break below this threshold remains high, as the relative strength index lacks upward momentum and the 50-period moving average is still heading downward. To sum up, as long as 0.6850 is resistance, look for further decline to 0.6755 and 0.6725 in extension.
Trading recommendations:
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 0.6775. A break of this target will move the pair further downwards to 0.6725. The pivot point stands at 0.6850. 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 0.6885 and the second target at 0.6925.
Resistance levels: 0.6885, 0.6925, 0.6965
Support levels: 0.6775, 0.6725, 0.6675
The material has been provided by InstaForex Company - www.instaforex.com
