Daily Market Analysis by ForexMart

January 4, 2017
Oil Price Climbed Due to Limited supply
Oil moved higher this day as price hikes caused by the supply reduction of crude from top oil exporters such as Saudi Arabia. Moreover, the appreciation of U.S. dollar and steady advancement of the economy have limited returns.
Physical oil supplies has been constricted since production output has significantly lessened which was enacted to end the oil glut. Hence, oil producers were propelled to raise its prices. On the other hand, imports also became expensive because of U.S. dollar strengthening. The official selling price is set to increase in February.

January 4, 2017
Positive US Economic Data Stimulates Three-Month Dollar Index Surge
The USD has recently surged to its highest levels in 14 years as a string of highly positive economic data from the US increased the bullish outlook for the said currency this 2017. The USD increased further after US manufacturing data exhibited its fastest pace during a two-year period. Traders are now waiting for the release of the minutes of the Federal Reserve’s meeting which is set on Wednesday, as well as the US employment data which is scheduled to be released this coming Friday. as these are expected to determine whether the increasing value of the US dollar would still be retained in the coming days.

EUR/USD Fundamental Analysis: January 5, 2017
The USD has been exhibiting corrections across the market during the start of today’s trading session, causing the EUR/USD pair to break through 1.0500 before eventually settling at 1.0525 points, with the outlook for the currency pair looking generally positive for today’s session. The market is expected to go through a lot of market volatility during the next few days since there are a number of major economic news releases set to be released in the coming days. However, it is still unclear whether the USD would be able to sustain its corrections in the next few days.
Since there were no economic data released during the first few hours of the previous trading session, the market has shifted its focus on the minutes of the FOMC meeting. Once the minutes were released, however, the USD sustained damages since the minutes did not have any clear hawkish stances. This has caused the EUR/USD to hit 1.0500 and then went even lower as the USD quickly recovered. The currency pair has since then been regaining its footing after the USD lost some of its strength.
For today’s trading session, the major economic news releases include the ADP Non-Farm Employment Change data, a precursor to the NFP data which is set to be released during tomorrow’s trading session. The Unemployment Claims data as well as the Non-Manufacturing PMI data will be closely monitored by the majority of market players, since these are expected to continue the generally positive economic trend seen in the US lately. A positive reading from this particular set of data could also become determinants of whether the next interest rate hike from Fed would come earlier, therefore increasing the frequency of hikes. However, if the data comes out as negative, then the USD could be subject to more corrections prior to the release of the NFP economic data.

USD/CAD Fundamental Analysis: January 5, 2017
The USD/CAD pair exhibited a significantly large correction during yesterday’s trading session after the USD lost some of its value due to the absence of a hawkish undertone on the minutes of the FOMC meeting which was released yesterday. The USD/CAD only weakened further since it had already failed to reach the higher trading regions. The USD/CAD pair is now sitting just over the 1.3300 trading region.
Since oil prices have been generally positive during the past few days, the market expects that its effect would be felt in the current value of the CAD as well, and true enough, the currency pair dropped yesterday while the market went into a lull. The Canadian dollar then extended its losses after the release of the FOMC minutes, which triggered the weakening of the USD and therefore increased the downward pressure on the USD/CAD pair.
There are no major economic news releases from the Canadian economy for today’s session. However, the US is expecting to release a number of major data, including the Unemployment Claims data, and the ADP employment report. These data are determinant of whether the market would experience added volatility or otherwise, depending on the readings. The US will also be releasing the NFP report tomorrow, which is considered as a critical determinant of market volatility. Traders are encouraged to evaluate the effects of these news releases on the currency pair before trading in on the USD/CAD.

GBP/USD Fundamental Analysis: January 5, 2017
The GBP/USD significantly increased in value during the previous trading session after the USD dropped following the release of the latest FOMC meeting minutes. The market was somewhat docile during the rest of yesterday’s session but immediately picked up after the release of the minutes during the North American session yesterday, and has caused the USD to undergo corrections across the board.
However, the reaction of the GBP/USD pair to this phenomenon is somewhat docile compared to other USD-related currency pairs, and this is expected to keep the bulls on their toes. Initially, the GBP/USD pair was expected to rise exponentially since the UK construction PMI data clocked in a highly positive reading and exceeded its market expectations of 54.2, and the FOMC minutes lacked the expected hawkishness from the market. But the reason why this currency pair’s growth was significantly limited is that the various risks and uncertainties surrounding the Brexit process continues to dog a lot of traders due to the general confusion within this issue. This is why a number of speculators are saying that the GBP/USD would be receiving the shorter end of the stick once the USD regains its strength.
Although the UK is not expected to release any economic data for today, the US will be releasing a number of important economic data along with the highly essential NFP report, which is expected to determine the overall market sentiment for the rest of the month. If these set of data comes out as positive, then the USD could possibly rebound and could be sustained until the end of January.

EUR/USD Technical Analysis: January 5, 2017
The positive data from the Euro zone supported the single European currency which further strengthened versus its US peer. Based on the EU statistical data, the inflation rate of the European countries is fast growing. While the favorable Markit Services and Composite PMIs of France and Germany further reinforced the EUR.
Technically, the major pair maintained a mid-term downward channel within a lower boundary. However, the 4-hour chart showed a limited upside potential. The Fiber reversed some of its losses during the trades on Wednesday. The buyers drove the prices towards the 1.0450 level where an upward impetus gradually disappear in the middle session of the EU hours. After reaching the aforesaid level, euro return on its recent region where it stayed.
The 50-EMA is in a neutral position and have been tested by the price in the mentioned time frame accordingly, while the 200 and 100-EMAs headed downwards.
The EUR/USD hovered under the moving averages as the level of resistance touched the 1.0450 and support entered at 1.0400.
The MACD histogram increased which indicated a weak position for sellers. RSI moved in the neutral zone and departed from the oversold area.
As it was mentioned in the forecast, the EUR is expected to kept intact in the pressured area but recovered the 1.0500 barrier. Buyers are able to lead the pair towards 1.0550. A break down from the 1.0400 handle will cause weakness for the EURUSD as well. The initial target of the sellers is 1.0350.

GBP/USD Technical Analysis: January 5, 2017
The recent data from the United Kingdom presented positive figures which caused for the British currency to recover. On the other hand, statistics for Consumer Credit, Construction PMI, and Mortgage Approvals showed better-than-expected results despite of the Brexit referendum.
As the pound recovered, it remained to be weak versus its American counterpart and traded under the 1.2300 level on Wednesday.
The traders drove the price upwards during the early trades. The cable pair had its recovery in the 1.2285 region where an upward trajectory ran out of stream in the post-EU opening. As it was shown in the 4-hour chart the price has tested the 50-EMA yesterday in the midst of the Asian session. The price was unable to recover the level and continued to sit behind the moving averages as indicated in the same trading chart. Moving averages (50, 100 and 200) remained to be bearish. Resistance jump in at 1.2300, support touched the 1.2200 handle.
The MACD histogram lies at the center point. As it approached the negative area, seller’s strength will grow but an entry within the positive zone will indicate buyers ability to dominate the market. The RSI stayed in the neutral territory.
Technical indicators presented a bearish sentiment. The initial target is 1.2200, in case the price consolidates below the primary target, the bearishness may extend towards the 1.2100 region. Furthermore, the continuous easing of the dollar would cause the GBP/USD to resume its 2-month low recovery. In order for the downward pressure to neutralize, buyers should regain the 1.2300 mark.

USD/CAD Technical Analysis: January 5, 2017
The positive sentiment of the oil market yesterday brought favorable impact on commodity currencies including the Canadian dollar.
The U.S dollar recovered in the Asian hours and slowed down within the 1.3470 range when the commodity-linked pair move towards fresh offers as it continued to fell under the 1.3400 support during the onset of EU trades.
Sellers were able to resume their gains amid the European session and pointed to the 1.3260 region. The downward pressure weakened near the 1.3300 while the price made a reversal around the aforesaid level. The price further broke the 200 and 100-EMAs in a descending manner as shown in the 4-hour chart. The 100 and 50-EMAs maneuvered towards a higher position while the 200-EMA is trending neutral. Resistance took the 1.3400 level, support highlighted the 1.3330 mark.
MACD indicator declined which confirmed strength for the sellers. RSI kept intact around the oversold zone.
In case the price had directed below the 1.3330 region, it will open an opportunity for the sellers to continue a short-term downward trend. The next probable target of the sellers are the 1.3190 and 1.3260 marks. The USD/CAD is able to bounce off few of its losses if it moves back on top of the 1.3330.

NZD/USD Technical Analysis: January 5, 2017
The New Zealand dollar slumped yesterday but rebounded for support in the afternoon. The 0.70 level shows a strong resistance and the exhaustive candle seen gives a selling opportunity that is formerly a downtrend for long-term. The pair is considered to be oversold that makes consolidation good or a few rebound. The New Zealand dollar seems to decline in the long run with the target near the 0.68 handle.

GBP/JPY Technical Analysis: January 5, 2017
The British pound surged against Japanese yen on yesterday’s trading session in the midst of weak volatility in the market. This is already expected with traders coming back after the holiday.
The psychological level is seen lower than the 140 mark.The uptrend for long-term may persist with a possibility for chances of reversal. The session could stay calm in the next days to come thus, the traders should be patient.

USD/JPY Technical Analysis: January 5, 2017
Yen was under pressure in morning trading session yesterday even though the results of Manufacturing PMI were positive. This was because of the European equity market attributed subtle and cautious sentiment that swayed the risk appetite supporting yen being a safe haven currency in the afternoon. As for U.S. Treasury bond yields, its retracement has influenced the U.S. dollars to remain low.
The pair USD/JPY maintained neutral with bullish tone. The pair was not able to maintain the recovery in Asian trading session when a string psychological level was seen at 118.00 mark and retreated. Not long after, the level moved wiping out gains.
The pair has been tested twice throughout the day and failed to surpassed its psychological levels in the 50-EMA. Both 100-EMA and 200-EMA were directed upward while the 50-EMA remained neutral. Its seems that the price will remain to sway higher than the moving averages for the day. The Resistance level is seen at 118.0 level while the support posited at 117.00 mark.
The MACD showed an uptrend while the RSI entered the neutral area coming from the Overvalued area. The price trend could further go up advancing towards the 118.00 level when the buyers maintain its lead in the market with the next target at 119.00 level.

January 5, 2017
US Treasuries Whipsaw as FOMC Minutes Shifts Focus on USD and Fiscal Policies
US Treasuries careened between losses and gains after the minutes from the FOMC meeting last December showed that majority of the Federal Reserve’s officials have shifted their focus on slowing down the frequency of interest rate hikes. The minutes also revealed that various risks from the central bank’s fiscal policies is seen as a catalyst for speedier economic growth. The minutes of the FOMC showed a docile hawkishness but lacked any dovishness in its stance.

January 5, 2017
Inflation rate in the Eurozone Rack Up
The inflation rate in the European region had increased, reaching its highest pace after three years. The surge is driven by the price hike for alcohol and tobacco, energy and food.
Based on the report from the Eurostat, the inflation percentage for December gained 1.1% which is notably higher from November’s result of 0.6%.
The highest rate occurred last 2013 in the month of September by which the result is also 1.1%. The final outcome is higher-than-expected which made the ECB’s target less than 2%.
The energy prices surge by 2.5% yearly, while the value of food and intoxicants grew by 1.2% year over year. Moreover, the energy costs rose due to OPEC’s resolution to decrease the production output.
The sharp jump lessened the fears of Europe regarding the possible deflation which could weakened the eurozone’s economic growth. Meanwhile, other core prices compelled by world markets had a limited rise from 0.8% to 0.9% only, this little progress would mean that the December’s inflation is “short-lived” according to analysts.

January 5, 2017
Countermeasures of China to Curb Yuan in 2017
Yuan rallied this year especially the offshore trading and China is creating its contingency plan to curb the capital outflows for 2017. The offshore yuan climbed 0.9 percent to 6.8958 against U.S. dollar which is the highest increment since January 2016.
This plan was thought to counter recovering U.S. dollar while country’s capital outflow increases. Moreover, the ongoing threat from changes in U.S. policies regarding exports under Trump’s presidency. China might also sell U.S. Treasuries this year if necessary to secure the currency. This is predicted to expand the supply for foreign exchange within the onshore market and in return would support yuan in the short term.

USD/CAD Fundamental Analysis: January 6, 2017
The USD/CAD pair continued to exhibit a dismal trading activity during the previous session after it went below 1.3200 for a brief period before incurring a small reversion, The pronounced weakness in this particular currency pair was mainly due to the USD’s recent drop in value during the previous trading sessions. This, along with the significant increase in market volatility, has shown that market investors and traders are now returning from their respective holidays.
The Canadian dollar has been receiving additional support from crude oil prices, which is currently still maintaining its strong stance. This is why the USD/CAD’s movement is now largely influenced by dollar movement. Since the USD is now relatively weaker as compared to the past sessions, the USD/CAD’s value plummeted to below 1.3200, but was immediately faced with a lot of buying pressure, thereby causing the pair to revert back towards 1.3250 points.
For today’s market trading session, both the Canadian and US economies are set to release a large volume of economic data, among them the Canadian employment change data, unemployment rate data, and trade balance data, as well as the NFP report, unemployment rate data, and average earnings from the US economy. As such, the USD/CAD is expected to undergo a lot of market volatility. The USD/CAD pair is expected to continue its upward trend, and could possibly go through 1.3000 points.

GBP/USD Fundamental Analysis: January 6, 2017
The GBP/USD pair continued increasing in value during the previous trading session. The reaction of the sterling pound to the recent market activity has been somewhat muted compared to other currency pairs. However, it still continues to trade in accordance to the current market trends. The past trading sessions saw a highly-volatile USD, and this has been reflected in the GBP/USD pair as well. The currency pair was able to stay just over 1.2300 and just below 1.2400 points due to the recent corrections in the US dollar.
The GBP/USD recent surge in value was mostly due to the generally upbeat data coming from the UK recently, with the UK services PMI data coming in at 56.2, thoroughly exceeding initial market expectations. This positive data has triggered the pair to move beyond 1.2300 points, and as the USD weakened during the North American session, the GBP/USD pair was able to go further towards 1.2400 points.
For today’s trading session, there are no major economic data scheduled to be released from the UK. However, the US is set to release its unemployment rate and average earnings data, as well as the highly-anticipated NFP report. If these set of data comes out lower than expected, then this could cause delays in the Fed’s rate hikes, thereby causing the GBP/USD pair to possibly move towards 1.2500 points. Otherwise, then the pair could possibly revert back to 1.2300 once the USD regains its strength due to the upbeat economic data coming from the US.

EUR/USD Fundamental Analysis: January 6, 2017
The EUR/USD pair was subject to extremely high market volatility during yesterday’s trading session, which signals that the majority of market players have now returned to the market after the holiday season. The USD’s correction, which started after the FOMC released a less hawkish statement, continued all throughout yesterday’s Tokyo session. However, once the European session commenced, the USD was able to bounce back and regain its previous strength, causing the EUR/USD pair to plummet through 1.0500 points from its recent value of 1.0575. But once the New York session opened, the EUR/USD pair again bounced back from its loss as the USD again experienced a drop in its strength, thereby putting upward pressure on the currency pair and pushing it over 1.0500 and is now resting just below 1.0600 points.
As based on the minutes of the FOMC meeting, although the minutes lacked the hawkishness that the market initially expected, it has nevertheless shown that there could be at least 2-3 interest rate hikes expected from the central bank this year. Market analysts are speculating that this sudden volatility in the financial market is merely a foreshadowing of the large volume of economic data which is set to be released today.
For today’s trading session, there are no scheduled economic data release from the European Union. However, the US will be releasing its highly critical NFP report, as well as the average earnings report and unemployment rate data. If these data comes out as positive, then the market could possibly again see a hike in the value of the USD. The EUR/USD pair could possibly reach 1.0700 points since traders and investors are expecting a generally positive economic data from the US, which could then compel the Fed to increase the frequency of their future rate hikes.

EUR/USD Fundamental Analysis: January 6, 2017
The EUR/USD pair was subject to extremely high market volatility during yesterday’s trading session, which signals that the majority of market players have now returned to the market after the holiday season. The USD’s correction, which started after the FOMC released a less hawkish statement, continued all throughout yesterday’s Tokyo session. However, once the European session commenced, the USD was able to bounce back and regain its previous strength, causing the EUR/USD pair to plummet through 1.0500 points from its recent value of 1.0575. But once the New York session opened, the EUR/USD pair again bounced back from its loss as the USD again experienced a drop in its strength, thereby putting upward pressure on the currency pair and pushing it over 1.0500 and is now resting just below 1.0600 points.
As based on the minutes of the FOMC meeting, although the minutes lacked the hawkishness that the market initially expected, it has nevertheless shown that there could be at least 2-3 interest rate hikes expected from the central bank this year. Market analysts are speculating that this sudden volatility in the financial market is merely a foreshadowing of the large volume of economic data which is set to be released today.
For today’s trading session, there are no scheduled economic data release from the European Union. However, the US will be releasing its highly critical NFP report, as well as the average earnings report and unemployment rate data. If these data comes out as positive, then the market could possibly again see a hike in the value of the USD. The EUR/USD pair could possibly reach 1.0700 points since traders and investors are expecting a generally positive economic data from the US, which could then compel the Fed to increase the frequency of their future rate hikes.

GBP/USD Technical Analysis: January 6, 2017
Despite the “soft” remarks from the Fed, the USD seems weak versus the pound which continued to strengthen. Moreover, the British currency gained support from the favorable data of the PMI Services. The GBP established a bearish sentiment upon the interruption of its recovery within the 1.2361 level.
The cable pair use up the renewed offers changed its trend and declined in the 1.2269 as Asian session closes.
After posting its session lows, the buyers regained some of its losses and reclaim the predetermined level 1.2300.
According to the 4-hour chart, the price surpasses the 50-EMA upwards and test the 100-EMA as well. The GBPUSD is sandwiched between the 100 and 50-EMA. All moving averages moved lower as shown in the same trading chart. The resistance of the pair is seen at the 1.2300 region, support came in at 1.2200.
The MACD indicator lies in the centerline. If the histogram hovered in the negative zone, seller’s strength will improve, while an entry to the positive territory will allow for the buyer to take over the market. The RSI stayed in the neutral area.
Subsequent to the recovery of the pair, it preserved a bearish tone indicated in the 4-hour chart. Sellers aim to reach the 1.2200 and 1.2250 areas.

EUR/USD Technical Analysis: January 6, 2017
The single European currency shifted into a negative stance before the country’s Producer Price Index came in yesterday. The euro showed higher-than-expected results but failed to extend its value. Due to some inadequacy of solid data from the euro zone, traders draw their attention towards the American calendar. According to reports, the United States is anticipated to put out diverse reports about the labor market namely ADP Employment Change and US Initial Jobless Claims. On the other hand, the Markit Composite PMI is also included in the checklist.
The EUR/USD begin with a strong note on Thursday and rack up towards the 1.0574 where it found a hurdle and change into bearish.
The EUR rebounded the mark and pointed downwards. The sellers pushed the 1.0550 level in the European early trades, it further tested the 1.0500 in the middle session of Europe.
Before the outset of the NY session, the pair decline as the bears entered the area of 1.0450
As shown in the 4-hour chart, the price takes out the 100 and 50-EMAs upwards while the 200-day moving averages were tested amid the morning trading.
The euro was unable to regain the bearish 200-EMA and had a trend reversal in the post-EU opening. The 200 and 100-EMAs descended, the 50-EMA was neutral. Resistance took the 1.0500 handle, support is seen at 1.0450.
The MACD indicator jumps in the positive territory. In case the histogram hovered in that position, buyers will strengthen. The RSI readings interpreted an overvalued condition.
The bearish tone is kept intact. A downward movement towards the 1.0400 and 1.0450 marks is highly anticipated. But an uptrend at 1.0550 would cause the present selling pressure to neutralize. The pair may expand its recovery up to the region of 1.0650.

USD/JPY Technical Analysis: January 6, 2017
The U.S. dollar depreciates as the uncertainty on the next Fed rate hike escalates. The pair USD/JPY was in tension with selling pressure on Thursday even though sellers lead the market pushing the price lower during the Asian session. The downtrend halts at 116.00 as it lost its impetus to go lower and went back to its opening price instead.
The pair demonstrates a bearish tone despite its recovery in the market. A break was seen in both 100-EMA and 200-EMA that shifted its direction upwards while the 50-EMA sustained its neutral position. The Resistance level was seen at 117.00 while the support levels was posited at 116.00 mark. The MACD moved within the Negative area indicating sellers gaining strength while the RSI reading was found in the oversold area.
The trend shows a bullish tone but its is anticipated for the price to full recovery once the pair go even higher than the Resistance level of 117.00 mark. Buyers may push it higher towards the 118.00 and 119.00 levels. However, if buyers fail to do so, the price could move towards the 115.00 mark.

USD/CAD Fundamental Analysis: January 9, 2017

The USD/CAD has recently been in a reticent mood during the past few trading sessions, and analysts are speculating that the USD/CAD pair could possibly be in for a good trading session since oil prices have now become buoyant and is expected to remain buoyant since the cutbacks in the production of oil are expected to be implemented anytime soon, thereby spelling good news for the Canadian dollar. The Canadian trade balance data as well as the employment change data also came out exceeding initial investor expectations, and this means that the CAD would be receiving substantial support both in the long term and short term, and the Canadian dollar’s value could be well on its way to increasing.
In a much more normal market setting, a scenario such as this would automatically lead to a correction in the USD/CAD. However, the USD is also gaining strength alongside the CAD, and this is expected to offset if not completely counter the effects of the recent rise in the value of the Canadian dollar. This situation is then expected to keep the pair within a tight trading range in the short term period. Friday’s session was a testament to this scenario, as the currency pair made a short drop at 1.3200 points but immediately went up above 1.3200 after the release of the economic data from the regions before finally settling just below 1.3250 points. There are no expected economic data to be released from both the Canadian and US economy for today, and this could help the USD/CAD to extend its gains towards 1.3300 points.

GBP/USD Fundamental Analysis: January 9, 2017



A lot of analysts have been initially saying that the GBP/USD pair will be the currency most likely to experience the majority of the adverse effects of the recent surge in the USD’s value, especially since there is a lot of confusion and discussion going on with regards to the provisions of the Brexit process, particularly with its stakeholders, who all have to step up their game in the next two years. This is why the GBP/USD pair has recently become more susceptible than ever, and traders are advised against selling any bounces in the GBP/USD pair. The downward trend in this particular currency pair is very evident, since its bounces have been very few and far in between, with deep corrections dogging the pair’s direction.

Friday’s session proved this particular downtrend in the pair, since the market has seen the currency pair stop its consolidation and plummeted through 1.2400 points and eventually through 1.2300 points. The NFP report as well as the average wages data from the US also came in last Friday, with the data showing an increase in average wages, thereby increasing chances that the Federal Reserve would be soon stating its next interest rate hike. The Scottish Prime Minister has also released some comments over the weekend, saying that Scotland would most likely undergo yet another vote with regards to “Scexit”, or Scottish independence from the UK. During the controversial Brexit vote, it can be recalled that Scotland initially voted to remain in the European Union but eventually had to concede after majority of the UK states voted to “exit” from the EU. This is only one the many issues surrounding the Brexit process, and will be incessantly putting the sterling pound in great risk.

There are no major economic data expected today from both the UK and the US, and the market is expected to be continuously dominated by the existing market trends for today’s trading session,and the USD strength is expected to be the driving force behind the market for today.

EUR/USD Fundamental Analysis: January 9, 2017



The EUR/USD pair traded in a muted fashion and exhibited ranging and consolidation after falling slightly from its original value following the release of the NFP report as well as US earnings report last Friday. The NFP report fell somewhat short of its initial market expectations. However, the US wage earnings increased significantly, thereby compelling the market to shift its focus instead on the wage earnings data.

The January report for the average wages data has spelled good news for the market, since it generally shows that more and more people are now able to sustain themselves, and would still be able to do so even if the Federal Reserve chooses to again increase its interest rates as needed. This has caused the USD to regain its losses, with the EUR/USD pair losing its ability to maintain its stance over 1.0600 points and has since then went below 1.0550, where it is still currently situated. Analysts are speculating that the strength of the USD would continue to surge for today’s trading session.

There are no major economic news releases expected from both the US and the European Union for today, and this means that the current market trends are expected to continue dominating the economy for today. The USD is expected to continue storming through the EUR/USD pair’s trading activity for today, even though this particular currency has exhibited unwavering strength over the past few days. This currency is expected to remain subjected to downward pressure for the rest of today’s session, and this could possibly induce the pair’s direction to move towards 1.0500 points.

NZD/USD Technical Analysis: January 9, 2016


The kiwi expand its recovery against its U.S peer during the middle session of Asia. Meanwhile, the NZD/USD is unable to move further the 0.7050 level and bounce back after it touched the aforesaid level.

During the EU session, the pair remained in a tight range that lies in the middle of 0.7000 and 0.7030. Another session of selling interest drove the New Zealand dollar downwards prior to the opening of the NY trades.

The price had a steep decline towards the 0.7000 range and extended its losses. According in the 4-hour chart, the price pushed the 50 and 100-EMAs higher and the 200-EMA was tested. It continued to struggle together with the neutral 200-EMA in the course of the EU hours. Moreover, the 50-EMA ascended, at the same time the 100-EMA moved southwards. Resistance touched the 0.7050, support is seen at 0.7000.

The indicators en route north around the bullish zone. The MACD histogram increased, favoring buyer’s strength. The RSI lies in overvalued territory.
The technical represents a bullish momentum. A The technical picture presents a bullish tone. A rapid price decline on top of the 0.7050 impedes the increase within the 0.7100 resistance level.