NZD/USD is expected to trade in a lower range as the key resistance is at 0.6585. The pair posted some technical rebounds yesterday after the recent decline. Nevertheless, the key resistance at 0.6585 still places prices under strong selling pressure. Besides, the relative strength index lacks upward momentum. Even though a continuation of the technical rebounds cannot be ruled out, its extent should be very limited. As long as 0.6585 is not surpassed, look for a new pullback to 0.6500 and 0.6445 in extension.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6500. A break of that target will move the pair further downwards to 0.6445. The pivot point stands at 0.6585. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6635 and the second target at 0.6675.
Resistance levels: 0.6635, 0.6675, 0.6705
Support levels: 0.65, 0.6445, 0.64
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 January 12, 2016 . Thanks for your support.
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