FX.co ★ Technical analysis of NZD/USD for May 5, 2017

NZD/USD is expected to trade with a bullish bias. The pair is trading above rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is mixed to bullish. In addition, the downside potential should be limited by the key support at 0.6840.

To sum up, as long as this key level holds on the downside, look for a new rise to 0.6920 and even to 0.6940 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6920 and the second one at 0.6940. In the alternative scenario, short positions are recommended with the first target at 0.6820 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 0.6800. The pivot point is at 0.6840.

Resistance levels: 0.6920, 0.6940, and 0.6970

Support levels: 0.6820, 0.6800, and 0.6750