NZD/USD is expected to trade with a bearish outlook. The pair has been capped by a bearish trend line since March 13, which confirms a negative outlook. The downward momentum is further reinforced by the declining 20-period moving average. The relative strength index is bearish, calling for a further drop.

To conclude, as long as 0.6950 is resistance, expect a new drop to 0.6885 and even to 0.6860 (the low of March 9) in extension.

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 0.6885. A break below this target will move the pair further downwards to 0.6560. The pivot point stands at .6950. If 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 0.6970 and the second one at 0.6995.

Resistance levels: 0.6970, 0.6995, and 0.7035

Support levels: 0.68885, 0.6860, and 0.6830