05, September 2016

NZD/USD (a 4-hour chart)

General overview

A weaker-than-expected Non-Farm payrolls report lowered the possibility of a Fed rate hike in September.

Current situation

The NZD/USD returned to a decrease on Friday. The price spiked immediately after the U.S labor market report to a fresh weekly high. The bullish spike quickly faded and the NZD headed towards the support 0.7250. The resistance is at 0.7320, the support comes in at 0.7250.

The 50, 100 and 200 EMAs are moving upwards. The price is approaching the 50-EMA which acts as a support now. MACD decreased which indicates the buyers’ positions weakening.  RSI bounced from the overbought area.

Trading recommendations

If the NZD/USD remains above 0.7250 the price may test 0.7320 again. Controversially, the instrument will drop below 0.7250.