NZD/USD (a 4-hour chart)
Concerns over Deutsche Bank make investors stay away from safe-heaven assets. Instead they preferred higher-yielding currencies – like Kiwi.
The NZD/USD pair had a positive day on Friday. The price recovered from the weekly low at 0.7230 and headed above 0.7250 where it closed the day. The pair broke upwards the neutral moving averages in the 4 hours chart. The resistance is at 0.7320, the support comes in at 0.7250.
MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI bounced from the oversold area.
Despite a recovery on Friday the overall tone is negative. The price remained in a descending channel which risks a further decline towards 0.7250 and 0.7220.