05.02.201611:52 Forex Analysis & Reviews: Technical analysis of NZD/USD for February 05, 2016

NZD/USD is expected to trade in a lower range. The pair stays above its rising 50-period moving average and remains on the upside. The relative strength index is around the neutrality level of 50 lacking downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.6770 at first. A breakout above this level would call for a further advance toward 0.6820.

Trading recommendations:

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. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6775 and the second target at 0.6820. In the alternative scenario, short positions are recommended with the first target at 0.6610 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 0.6555. The pivot point is at 0.6640.

Resistance levels: 0.6775, 0.6820, 0.6875 Support levels: 0.6610, 0.6555, 0.65