24, October 2016

NZD/USD (a 4-hour chart)

General overview

The NZD/USD declined as expectations for the next U.S. rate hike kept supporting the US dollar.

Current situation

 Kiwi was a little changed on Friday and remained prone to more weakness. Sellers kept pushing the price lower below 0.7200. The price stalled its decline around 0.7160 in the European trade. The pair broke the 200-EMA and tested the 100-EMA in the 4 hours chart. The 100-EMA provides a solid support and does not allow its further weakness. The moving averages (50, 100 and 200) are neutral in the mentioned timeframe. The resistance is at 0.7200, the support stands at 0. 7120.

MACD decreased which indicates the buyers’ positions weakening. RSI is moving towards the oversold area.

Trading recommendations

In the event that the sellers manage to force the below 0.7160 the NZD/USD may test 0.7120. If the price bounces from the mark 0.7160 the pair may recover up to 0.7200.