The NZD/USD is a very volatile paring for the moment, it is currently range trading between the previous high at the 0.677 mark and the 200 EMA. The 4 Hour chart above reflects the positive few days the Kiwi has had and has nearly regained the losses made at the end of February. The price looks like it is approaching the high of 0.67. However, the RSI is looking very close to the oversold position, therefore, it may not have enough momentum to reach that high. More than likely it will drop south back to the 200 EMA. As you can see from the 4 hour chart, the recent few candles have large shadows on the implying that the upwards movement is losing momentum. If the price decides to drop we will have to implement a fairly loose stop loss to remove unnecessary stops.
We do not advise trading in these conditions as they look very volatile and unpredictable, Therefore, we are going to wait and focus on other currency pairs until the direction becomes a bit more defined.
