FX.co ★ Technical analysis of NZD/USD for March 23, 2017

NZD/USD is under pressure. The pair broke below the 20-period moving average, and is challenging the 50-period one. The relative strength index turned down from the overbought level of 70. In addition, the key resistance at 0.7065 should limit the upside potential.

Therefore, as long as this key level is not surpassed, expect a return to 0.7000 and even to 0.6975 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 0.7000. A break below this target will move the pair further downwards to 0.69755. The pivot point stands at 0.7065. 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 0.7090 and the second one at 0.7115.

Resistance levels: 0.7090, 0.7115, and 0.7150

Support levels: 0.7000, 0.6975, and 0.69655