14, October 2016

NZD/USD (a 4-hour chart)

General overview

The kiwi remained weak due to Chinese trade data and ongoing weakness in oil prices.

Current situation

Sellers continued to dominate in the market. The NZD/USD pair extended its weakness on Thursday. The downward momentum faded a few pips below 0.7050. The price grew and reversed early losses. The overall picture is bearish and we believe that the current rebound does not have any legs. The moving averages extended their decline in the 4 hours chart. The resistance is at 0.7120, the support stands at 0.7050.

MACD is in the negative area. MACD grew which indicates the sellers’ positions weakening. The RSI oscillator moved upwards from the oversold area.

Trading recommendations

The level 0.7050 seems the next probable bearish target. A break below the level will suggest further weakness towards 0.6980.