01, August 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The dollar weakened after worse-than-expected Q2 GDP data. The kiwi grew after positive building permits report.

Current situation

A rebound from the level 0.6950 allowed the instrument to form a bullish channel. The pair climbed to the fresh weekly high on Friday. The session high was marked at 0.7213. The resistance is at 0.7250, the support comes in at 0.7150.

Technical indicators are giving buy signals. MACD is still positive. The histogram grew which indicates the buyers’ strength. RSI entered the positive territory.

Technically, the price is trending upwards from the 50, 100 and 200 EMAs in the 4 hour chart. The moving averages are turning upwards.

Trading recommendations

The price may roll back to 0.7150 where it will turn upwards. In this potential scenario, the next stop for the NZD/USD could well be around 0.7250.