16, November 2016

NZD/USD (a 4-hour chart)

General overview

The New Zealand currency strengthened on Tuesday as markets calmed down after the recent earthquake and Donald Trump victory.

Current situation

The overall picture remained firmly bearish. Prices traded around the 0.7100 region during the course of the day. Buyers tried to develop an upward correction, however, prices came under renewed selling pressure around 0.7150 at the beginning of the Asian session. The pair returned to the 0.7100 region where it spent the rest of the day. The 1 hour chart shows that the price is currently struggling with a bearish 50-EMA which acts as a resistance for it. The 50, 100 and 200 EMAs accelerated their declines. All moving averages kept heading lower. The resistance is at 0.7150, the support can be found at 0.7100.

MACD grew which indicates the sellers’ positions weakening. RSI left the undervalued area heading north.

Trading recommendations

The pair has a chance to strengthen while it stays above 0.7100. The level 0.7150 is the probable bulls’ target. However, further weakening towards 0.7070 is not ruled out.