NZD/USD is expected to trade above 0.6765. The pair extended its gains after the validation of an intraday "bullish flag" pattern. The 20-period and 50-period moving averages are heading upwards, and they will continue to push the prices higher. The relative strength index bounced off its neutrality area at 50, showing strong upward momentum. Hence, as long as 0.6765 is not broken, there is a possibility of further advance to 0.6865 and 0.69 (the high of December 16).
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, it is recommended to open long positions with the first target at 0.6865 and the second target at 0.69. In the alternative scenario, it is recommended to open short positions with the first target at 0.6740, 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 0.6710. The pivot point is at 0.6765.
Resistance levels: 0.6865, 0.69, 0.6950
Support levels: 0.6740, 0.6710, 0.6660
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of NZD/USD for December 22, 2015 . Thanks for your support.
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