04, August 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

In economic news, Labour cost index added 1.6% vs. expectations of 1.8% in New Zealand.

Current situation

The kiwi faced a downside pressure and closed bearish yesterday. The lowest trading price was marked at 0.7140. The resistance is at 0.7250, the support comes in at 0.7150.

MACD is in the positive area. The histogram decreased which indicates the buyers’ strength weakening. RSI is in the neutral territory. The oscillator is decreasing.

There is a cross-over on the Moving Averages in the 4 hours chart. The 50, 100 and 200 EMAs direction is upwards.

Trading recommendations

We believe the market would switch the tone to bearish. The pair may partly reverse its yesterday's losses, but it will resume its downward trajectory afterwards. The level 0.7050 is the sellers’ target.