11, October 2016

NZD/USD (a 4-hour chart)

Current situation

 Technically, the pair preserved its near-term downward trajectory. The NZD/USD pair gapped higher on Monday. The price was able to recover to 0.7180, where sellers turned it around. The kiwi was falling during the Asian and European sessions and reached the level 0.7120 at the beginning of the New York session. In the 4 hours chart the 50, 100 and 200 EMAs moved lower. The 50 and 100 EMAs crossed the 200-EMA downwards. The resistance is at 0.7200, the support stands at 0.7120.

MACD remained at the same level which confirms the strength of sellers. RSI remained within the oversold territory.

Trading recommendations

A beak below 0.7120 will extend losses towards 0.7050. To strengthen the NZD/USD needs to have a daily close above 0.7250. Meanwhile, any move above the current support we consider as corrective.