21, July 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The NZD decreased on the news that the RBNZ will soften its monetary policy next month.

Current situation

The kiwi traded weaker on Wednesday. The pair remained in the descending channel. The kiwi found a support at the level 0.7020. The resistance is at 0.7050, the support comes in at 0.6950.

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

The 4 hours chart shows that the instrument is just below the 200-EMA. The 50-EMA broke the 100-EMA downwards which is a sell signal. The 50 and 100 EMAs are moving downwards, the 200-EMA is horizontal.

Trading recommendations

If the NZD/USD does make a breakout at that level 0.7020 the instrument may decrease to 0.6950. The buyers’ nearest target remains at 0.7100.