18, July 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The NZD decreased when RBNZ decided to provide an update on the economy on July 21. The kiwi is too strong and the regulator might cut the rate to hold its growth.

Current situation

Technically, the instrument left the upward channel. The NZD decreased and left the level 0.7150 behind. The resistance is at 0.7150, the support comes in at 0.7050.

MACD is in the negative area. Its histogram decreased which indicates the sellers’ positions strength. RSI is close to the oversold territory which is a sell signal.

The 4 hours chart shows that the instrument broke the 50 and 100 EMAs and approached the 200-EMA which is its last hope to resume a growth.

Trading recommendations

We expect markets to stay bearish. In the scenario where the sellers still have a ball the pair will decrease to 0.7050 - 0.7000.