NZD/USD (a 4-hour chart)
The New Zealand dollar grew on the news that Trade Balance decreased in the country in June.
The pair gapped upwards and rallied towards the resistance at 0.7050. After breaking the level the bullish spike faded and the NZD/USD dropped back below the level 0.7050. Bears are gradually gaining more overall control. The resistance is at 0.7050, the support comes in at 0.6950.
MACD indicator is at the centerline. If the histogram returns into the negative territory, that will indicate sellers’ growing strength. If MACD gets into the positive area the buyers will take control over the market. Oscillator RSI bounced downwards from the overbought area which is a sell signal.
The NZD was able to break the 50, 100 and 200 Day EMAS in the 4 hours chart. However, the quotes did not advance further and the 100-EMA rejected the pair downwards. The moving averages are moving downwards with a bearish cross over between the 50-EMA and the 100 and 200 EMAs.
Technically, a bearish tone persists in the market. We believe the downtrend will continue. The next sellers' stop could well be at the mark 0.6980.