06, October 2016

NZD/USD (a 4-hour chart)

General overview

Weak dairy auction products together with risk-aversion on the back of the bonds yields growth weighed on the kiwi.

Current situation

The bearish trend remained intact on Wednesday. The price kept battling with the 0.7165 mark to decline further. The 50, 100 and 200 EMAs are turning downwards. The 50-EMA crossed the 200-EMA downwards in the 4 hours chart. The resistance is at 0.7200, the support stands at 0.7120.

MACD decreased which confirms the strength of sellers. RSI is in the oversold area.

Trading recommendations

A bearish tone prevails in the 4 hours chart. The loss of the 0.7200 level is now pointing to a further period of downside to come. Sellers will try to lead the price to 0.7120.

Alternatively, the NZD/USD pair may try to regain the level 0.7200. Should this mark be reached successfully, a further extension towards 0.7230 is possible.