FX.co ★ Technical analysis of NZD/USD for July 28, 2016

NZD/USD is expected to prevail its upside movement. The pair is bullish above its rising 20-period and 50-period moving averages, which act as support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. A support base has formed around 0.7055, which should limit the downside potential. The pair broke above the upper boundary of the Bollinger Band, which is a positive sign and could signal a continuation of bullish trend. As long as 0.7055 is not broken, look for further upside toward 0.7155 and even 0.7180 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 0.7155 and the second one, at 0.7180. In the alternative scenario, short positions are recommended with the first target at 0.7010 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6970. The pivot point is at 0.7055.

Resistance levels: 0.7155, 0.7180, 0.7235

Support levels: 0.7010, 0.6970, 0.6935