11.05.201707:25 Forex Analysis & Reviews: Technical analysis of NZD/USD for May 11, 2017

Long-term review

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NZD/USD is expected to trade in lower range. The pair broke below its former key support at 0.6880, which becomes a key resistance now, and accelerated on the downside. The relative strength index has broken below its 30% level. The 20-period moving average crossed below the 50-period one, which is negative.

As long as 0.6880 holds on the upside, look for a further drop towards 0.6800 and even 0.6775 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 0.6800. A break below this target will move the pair further downwards to 0.6775. The pivot point stands at 0.6880. 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 0.6915 and the second one at 0.6950.

Resistance levels: 0.6915, 0.6950, and 0.6980

Support levels: 0.6800, 0.6775, and 0.6730

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