NZD/USD is expected to trade in lower range. The pair has broken below its previous support at 1.3360 which should now play a key resistance role. Both 20-period and 50-period moving averages are descending and should maintain a bearish bias. And the relative strength index is still below its neutrality area at 50, lacking upward momentum.
As long as 0.7040 holds as the key resistance, the risk of a break below 0.6990 remains high. A break below this level may allow for further drop to 0.6975.
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 0.6990. A break below this target will move the pair further downwards to 0.6975. The pivot point stands at 0.7040. If 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 0.7055 and the second one at 0.7070.
Resistance levels: 0.7055, 0.7070, and 0.7105
Support levels: 0.6990, 0.6975, and 0.6940