FX.co ★ Technical analysis of NZD/USD for January 20, 2017

NZD/USD is under pressure. The pair broke below its 20-period and 50-period moving averages, which play resistance roles now and maintain the downside bias, and accelerated on the downside. The relative strength index is capped by a bearish trend line and is below its neutrality level at 50. Additionally, 0.7205 is playing a key resistance role, which should limit the upside potential. As long as this key level holds on the upside, look for a further drop toward 0.7115 and even 0.7090 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 0.7115. A break below this target will move the pair further downwards to 0.7090. The pivot point stands at 0.7205. 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 0.7225 and the second one at 0.7245.

Resistance levels: 0.7225, 0.7245, 0.7275

Support levels: 0.7115, 0.7090, 0.7060