12, August 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The kiwi grew to one-month high following the RBNZ decision to cut the rate by 0.25%.

Current situation

Sellers seem to have returned to the market. After reaching the one-month high the price reversed and headed downwards. Traders were able to lead the price from the mark 0.7335 to 0.7225. The resistance is at 0.7250, the support comes in at 0.7150.

The indicators generate a sell signal. MACD decreased which indicates the sellers’ positions strength. RSI bounced from the overbought area.

The price is approaching the 50-EMA in the 1 hour chart. The 50, 100 and 200 EMAs are still trending upwards.

Trading recommendations

The bearish views are getting more popular. We believe the pressure will persist. The next sellers' stop could well be at the 0.7150 region.