FX.co ★ Technical analysis of NZD/USD for July 27, 2016

NZD/USD is expected to prevail its upside movement. The technical picture of NZD/USD is positive above its key support at 0.6995, which should limit the downside potential. The upside momentum is further reinforced by its rising 50-period moving average, which is playing a support role and maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. As long as 0.6995 holds on the downside, look for further upside movement towards 0.7065 and 0.7095 in extension.

Recommendation:

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 0.7065 and the second one, at 0.7090. In the alternative scenario, short positions are recommended with the first target at 0.6970 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 0.6950. The pivot point is at 0.6995.

Resistance levels: 0.7065, 0.7085, 0.7125

Support levels: 0.6970, 0.6950, 0.6920