24, November 2016

NZD/USD (a 4-hour chart)

General overview

Kiwi weakened following the dollar strengthening. The dollar edged higher in the light of the latest US data which had showed the US economy growing strength.

Current situation

We maintain a short-term bearish outlook for the pair. Sellers seem to be guarding 0.7100 level rejecting prices downwards on every attempt to an upside. The NZD retreated from the daily high and declined to the nearest level 0.7050 post-Europe open on Wednesday. The level slowed down the downward momentum for a while and was broken afterwards. Sellers pushed the price to 0.7000. The 50-EMA rejected the price in the 4 hours chart. The moving averages direction is downwards. The resistance is at 0.7050, the support comes in at 0.7000.

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 was in a neutral area.

Trading recommendations

The NZD/USD pair will maintain negative tone until its stays below 0.7100. After breaking 0.7050 the level 0.7000 will come back to the radar. Should the kiwi bounce of 0.7050 the price may extend its gains towards 0.7100.