FX.co ★ Technical analysis of NZD/USD for October 26, 2016

NZD/USD is expected to trade with bearish bias. The pair is trading above its rising 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50 and lacks downward momentum. The intraday indicators are mixed and call for caution. We are cautiously negative now. As long as the key resistance at 0.7205 is not broken up, we keep our negative view unchanged with down target at 0.7135 first.

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 0.7135. A break below this target will move the pair further downwards to 0.7105. The pivot point stands at 0.7205. In case 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 0.7230 and the second one at 0.7255.

Resistance levels: 0.7230, 0.7255, 0.7285

Support levels: 0.713, 0.7105, 0.7075