20, September 2016

NZD/USD (a 4-hour chart)

General Overview

The NZD/USD pair strengthened due to the oil prices growth.

Current situation

The overall picture is neutral. The dollar weakness helped the pair to recover all of its losses. The price approached the resistance at 0.7320. The kiwi bounced from the 200-EMA and grew through the 50 and 100 EMAs in the 4 hours chart.  The moving averages are neutral in the same chart. The resistance is at 0.7320, the support comes in at 0.7250.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI is heading towards the overbought territory.

Trading recommendations

We remain bullish in the short term. If the price breaks the level 0.7320 the kiwi will continue its upward trajectory towards 0.7350. If the level 0.7320 holds the NZD/USD pair will bounce back towards 0.7250.