Technical Analysis of NZD/USD for May 10, 2016
NZD/USD is under pressure and moving downward target at 0.6705. The pair has been capped by the descending 50-period moving average and is accelerating on the downside. Meanwhile, the relative strength index is badly directed, calling for a further decline. Hence, as long as 0.6810 holds as the key resistance, look for further decline to 0.6705 and 0.6665 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 0.6705. A break of this target will move the pair further downwards to 0.6650. The pivot point stands at 0.6810. 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 0.6860 and the second target at 0.6890.
Resistance levels: 0.6860, 0.6890, 0.6920
Support levels: 0.6705, 0.6650, 0.66
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