27, June 2016

NZD/USD (a 4-hour chart)

NZD/USD (a 4-hour chart)

General overview

The New Zealand dollar was pretty volatile last Friday. The reason for that was the same theme as everywhere – Brexit. The NZD was under pressure due to the risk aversion.

Current situation

The instrument fell at the Asian session on Friday. However the kiwi was able to recover and returned almost all its losses later the day. The market tone is still positive and the current rebound below 0.7150 should be considered corrective. The resistance exists at 0.7150, the support lies at 0.7050.

Even though MACD decreased it remained in the positive area. We consider that is a buy signal. The indicator RSI bounced from the oversold area and shows a buy signal. The pair is above the Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages direction is neutral.

Trading recommendations

The pair is overbought. The buyers’ next target is the mark 0.7250. If NZD decreases it will drop to 0.6850.