NZD/USD (a 4-hour chart)
The markets ignored the growth of trade surplus in New Zealand in May. Meanwhile, the US dollar continued to strengthen after the referendum in Britain.
The trend is objectively bearish and the instrument is undervalued. The NZD/USD was falling the whole Monday and reached the local low that was set last Friday. The resistance exists at 0.7050, the support lies at 0.6950.
MACD is in the negative area. If the indicator remains in the undervalued area the pair will decrease. RSI is close to the oversold level. If the oscillator decreases or remains at the current levels that will be a sell signal. If RSI growth, that will be a buy signal for us. The NZD broke 50 and 100 day moving averages and is approaching 200-day moving average. The 50-SMA and 100-SMA are turning down, the 200-SMA is still moving upwards.
The sellers’ next target is the mark 0.6950. If NZD grows it will grow to 0.7050.