FX.co ★ Technical analysis of NZD/USD for January 12, 2017

NZD/USD is expected to move further upside. The pair broke above its 20-period and 50-period moving averages and accelerated on the upside. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. As long as 0.7035 holds on the downside, look for a further upside toward 0.7095 and even 0.7115 in extension.

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 0.7095 and the second one at 0.7115. In the alternative scenario, short positions are recommended with the first target at 0.7010 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 0.6945. The pivot point is at 0.7035.

Resistance levels: 0.7095, 0.7115, 0.7145

Support levels: 0.7010, 0.6980, 0.6945