08.07.201606:36 Forex Analysis & Reviews: Technical analysis of NZD/USD for July 08, 2016

NZD/USD is expected to trade in higher range as pair will prevail its upside movement. The pair broke above its 20-period moving average with strong momentum and is heading upwards. The rising 50-period moving average maintains the upside bias. Furthermore, the pair also broke above the upper boundary of the Bollinger Band, which could signal a continuation of bullish acceleration. Meanwhile, a support base has formed around 0.7200, which should limit the downside potential. As long as 0.7200 is support, look for further upside toward 0.7300 and 0.7330 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 0.7300 and the second one, at 0.7330. In the alternative scenario, short positions are recommended with the first target at 0.7170 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 0.7135. The pivot point is at 0.7200.

Resistance levels: 0.7300, 0.7330, 0.7375

Support levels: 0.7170, 0.7135, 0.7075