09, January 2017

NZD/USD (a 4-hour chart)

 Current situation

The New Zealand dollar extended its recovery versus the US dollar in mid-Asia. However, the pair failed to advance beyond 0.7050 and jumped back after touching the level. NZD/USD was confined to the tight range between 0.7000 and 0.7030 during the European hours. A bout of fresh selling interest dragged the kiwi downwards ahead of the NY opening. The price sharply dropped to 0.7000 handle and extended its losses afterwards. The 4 hours chart showed that the price broke 50 and 100-EMAs upwards and tested the 200-EMA. The price was battling with the neutral 200-EMA during the European session. The 50-EMA pointed higher while the 100-EMA turned south. The resistance is highlighted at 0.7050, the support comes in at 0.7000.

The technical indicators headed north within bullish territory. The MACD histogram grew which indicates buyers’ growing strength. The RSI indicator was within overvalued readings.

Trading recommendations

The technical picture presents a bullish tone. A break above 0.7050 risks a growth towards the resistance at 0.7100.