15, September 2016

NZD/USD (a 4-hour chart)

General Overview

The kiwi eased on the back of a weaker-than-expected Current Account in the country.

Current situation

The price bounced off 0.7250 and traded higher on Wednesday. The upwards trend is still intact despite the recent decline. The NZD is struggling with the bullish 200-EMA to go lower in the 4 hours chart. The price is sandwiched between the 100 and 200 EMAs in the mentioned timeframe. The 50 and 100 EMAs are pointing lower. The resistance is at 0.7320, the support comes in at 0.7250.

MACD decreased which confirms the strength of sellers. RSI is consolidating within oversold territory.

Trading recommendations

The tone is still negative in the market. A move below 0.7250 will signal the presence of sellers. The sellers will lead the price to 0.7200. In the scenario where buyers return control the NZD/USD will grow towards 0.7400 through 0.7320.