05, July 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The pair NZD/USD strengthened by 0.84% to 0.7250. Commodity currencies grew due to the oil price growth. The news that Weekly Crude Oil Stock decreased in the USA supported the Brent futures.

Current situation

The kiwi continued its recovery and was able to set a new local high at 0.7250. The resistance is at 0.7250, the support comes in at 0.7150.

MACD remained in the positive area. The positive MACD signals about buyers’ presence. RSI reached the overbought area. We prefer to buy until it stays close to the overbought level. The NZD/USD is above the Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages are moving upwards, that is a buy signal.

Trading recommendations

An uptrend will be continued as soon as the pair rises above 0.7250. A move below 0.7050 may trigger a downward movement towards testing 0.6950.