20.10.201610:41 Forex Analysis & Reviews: Technical analysis of NZD/USD for October 20, 2016

NZD/USD is expected to post some further gains. The technical picture of the pair is positive above its rising 20-period and 50-period moving averages, which act as support and maintain the upside bias. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum. Additionally, 0.7190 represents a significant key support level, which should limit the downside potential. As long as 0.7190 is not broken, look for a further upside toward 0.7280 and even 0.7310 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 0.7280 and the second one at 0.7310. In the alternative scenario, short positions are recommended with the first target at 0.7155 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 0.7125. The pivot point lies at 0.7190.

Resistance levels: 0.7280, 0.7310, 0.7350

Support levels: 0.7155, 0.7125, 0.7070