12, January 2017

NZD/USD (a 4-hour chart)

General overview

The NZD/USD edged lower amid a stronger dollar. Meanwhile, oil prices weakening weigh on commodity currencies – like the kiwi.

Current situation

The NZD/USD pair turned positive on Wednesday. An overnight rebound lifted the kiwi out of the red. The New Zealand dollar broke 0.7000 in the Asian session and headed towards 0.7050 in European trades. However, the upward momentum faded soon. After posting a daily high at 0.7020 the NZD returned to 0.7000 handle. The price was between the 50 and the 200-EMAs in the 4 hours chart. The 50-EMA headed north crossing the 100-EMA upwards. The 100 and the 200-EMAs were flat in the same chart. The resistance is highlighted at 0.7000, the support comes in at 0.6950.

MACD traded to the downside. The RSI indicator left the overvalued readings and entered the neutral area.

Trading recommendations

We expect the NZDUSD pair to return to the support 0.6950 in the short-term. In this scenario the spot may continue its decline towards 0.6900.