17.10.201611:56 Forex Analysis & Reviews: Technical analysis of NZD/USD for October 17, 2016

NZD/USD is expected to trade in higher range as the bias remains bullish. The pair has broken below its 20-period and 50-period moving averages and is consolidating on the downside. Nevertheless, 0.7070 is playing a key support role, which should limit the downside potential. The relative strength index is around its neutrality level at 50 and lacks downward momentum. As long as 0.7070 is not broken, look for a further upside toward 0.7145. A break above this level would call for a further advance toward 0.7175.

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 0.7145 and the second one at 0.7175. In the alternative scenario, short positions are recommended with the first target at 0.7030 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 0.7000. The pivot point lies at 0.7050.

Resistance levels: 0.7145, 0.7175, 0.7225

Support levels: 0.7030, 0.7000, 0.6970