FX.co ★ Technical analysis of NZD/USD for August 23, 2016

NZD/USD is expected to trade in a higher range. The pair recorded a succession of higher tops and higher bottoms since August 22, which confirms a bullish view. The rising 50-period moving average is playing a support role, which should limit the downside potential. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. As long as 0.7255 holds on the downside, look for further rise to 0.7355 and 0.7380 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 0.7355 and the second one, at 0.7380. In the alternative scenario, short positions are recommended with the first target at 0.7235 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 0.7205. The pivot point is at 0.7255.

Resistance levels: 0.7355, 0.7380, 0.7352

Support levels: 0.7235, 0.7205, 0.7170