NZD/USD is under pressure. After yesterday's downside breakout of 0.6720 (a key support), the pair reversed down heading toward its next support at 0.6665. Both the 20-period and 50-period moving averages are heading downwards, and should continue to push prices lower. Besides, the relative strength index is negative below its neutrality area of 50. In this case, as long as 0.6750 holds on the upside, look for a further decline to 0.6665 and 0.6615.

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 0.6650. A break of that target will move the pair further downwards to 0.6615. The pivot point stands at 0.6750. 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 0.6775 and the second target at 0.6805.

Resistance levels: 0.6775 0.6805 0.6860

Support levels: 0.6650 0.6615 0.6565