Our first target which we predicted in yesterday’s analysis has been hit. NZD/USD still expected to trade with a bullish outlook. Despite the recent pullback from 0.7145 (the high of Oct. 12), the pair is still trading above the rising 50-period moving average. The relative strength index is above its neutrality level at 50. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Therefore, above 0.7105, look for another advance to 0.7165 and even to 0.7190 in extension.
The black line is showing the pivot point. Currently, the price is above the pivot point, which indicates long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels and the green line is indicating the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7145, 0.7165, and 0.7190
Support levels: 0.7030, 0.7000, and 0.6955
The material has been provided by InstaForex Company – www.instaforex.com