FX.co ★ Technical analysis of NZD/USD for August 08, 2016

NZD/USD is under pressure and is expected to trade with bearish bias. The pair broke below a rising trend line since August 3 and remains capped by the descending 20-period and 50-period moving averages. Meanwhile, the relative strength index has broken down its 30 level. As long as 0.7165 is not broken above, the pair is expected to drop toward 0.7085 and even 0.7060 in extension.

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 0.7085. A break below this target will move the pair further downwards to 0.7060. The pivot point stands at 0.7165. 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 0.7195 and the second one at 0.7220.

Resistance levels: 0.7195, 0.7220, 0.7260

Support levels: 0.7085, 0.7060, 0.7015