29, November 2016

NZD/USD (a 4-hour chart)

General overview

The New Zealand dollar fell against its American counterpart amid oil prices drop and dollar’s return in the driver’s seat.

Current situation

After touching the level 0.7100 the kiwi stopped its growth. Buyers lost their legs around the level and gave place to sellers. Bears drove the pair to 0.7050 and touched the level ahead of the NA session. The NZD/USD hovered about the 50-EMA in the 4 hours chart. The 50-EMA was neutral and presented a solid support for the price. The 100-EMA crossed the 200-EMA and both lines kept heading lower. The resistance is at 0.7100, the support comes in at 0.7050.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI bounced off the overbought area and headed towards the oversold readings.

Trading recommendations

A daily close below 0.7050 will ease the current upward momentum. A loss of 0.7050 may trigger further weakness towards 0.7000.