12, July 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The New Zealand dollar weakened against the US dollar, the NZD / USD pair lost about 0.93%. Oil prices pressured commodity currencies due to the recovery of drilling activity recovery in the US.

Current situation

The sellers took control over the market. The pair NZD/USD finished the day in the red zone, the NZD lost about 1,07% on Monday. The resistance is at 0.7250, the support is seen at 0.7150.

MACD decreased that indicated that buyers’ positions weakened. RSI left the overbought area and it is in the neutral zone now. The decrease of the oscillator indicates the sellers’ strength.

The moving averages (50, 100 and 200) are growing in the 4 hours chart which is a buy signal. The quotes broke the 50-EMA and stopped at the 100-EMA in the 1 hours chart. The 100-EMA acts as a support now.

Trading recommendations

According to the daily chart the trend is objectively bullish. However, we recommend going short now with the first target – 0.7150 (the 50-EMA). We will buy the price from the lower levels. The price may rebound from the 0.7150 level to grow to 0.7250.