09, August 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The NZD/USD decreased on the back of the stronger than expected the U.S labor data. The strong labour market makes us believe in the USA economy strength.

Current situation

The pair recovered and returned some losses it had suffered last week. The price bounced upwards from the current support at 0.7085. The session high was marked at 0.7142. The instrument closed the day bullish. Its tone is still positive. The resistance is at 0.7150, the support comes in at 0.7050.

The indicators are in the negative territory. MACD decreased which indicates the sellers’ strength. RSI approached the oversold area.

The price bounced from the 200-EMA on Friday and returned above the 50 and 100 Day EMAs. The 50-EMA acts as a support. The moving averages are neutral.

Trading recommendations

An uptrend will start as soon, as the pair rises above the resistance level 0.7150. If the price is back below the 0.7085 (the 200-EMA) the price will resume its decrease towards 0.7050.