21.06.201613:32 Forex Analysis & Reviews: Technical analysis of NZD/USD for June 21, 2016

NZD/USD is expected to trade in a higher range as bias remains bullish. The pair remains bullish above its horizontal support at 0.7095. Further upsides are likely to challenge the nearest resistance at 0.7095 at first. Meanwhile, both the 20-period and 50-period moving averages are playing support roles. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Hence, as long as 0.7095 holds on the downside, the intraday outlook stays positive with targets at 0.7170 and 0.720 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 0.7170 and the second one at 0.72. In the alternative scenario, short positions are recommended with the first target at 0.7075 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 0.7035. The pivot point is at 0.7095.

Resistance levels: 0.7170, 0.72, 0.7245

Support levels: 0.7075, 0.7035, 0.7005