Technical analysis 16.07.19

NZDUSD

The pair is trading above the support level of 0.6710 against the backdrop of the growing inflation in New Zealand. The pair is supported by the positive second quarter GDP data in China and the expected reduction of interest rates in the US. The pair is expected to resume growth after a small correction.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is below the overbought territory and is reversing downwards. Stoch indicate a pause in decline.

Trading recommendations:

Buy the pair as it’s correcting downwards if it remains above 0.6710 with a possibility to go up to 0.6780 and then further to 0.6800.