- The pair has been bearish by obeying a bearish trend line in the H4 chart
- Simple Moving Average 30 has been a resistance
- The H1 chart had a bounce at 0.59400 and made a bullish move earlier
- The sellers may wait for a bearish breakout at 0.59400
NZD/USD Heading towards the Downside
NZD/USD pair has been bearish on the H4 chart for some days. The H4 chart shows that the price had several rejections at a trend line and made a new lower low. Simple Moving Average 30 has been its resistance as well. The sellers are going to keep an eye on the pair to go short at its strength.
The price has been in consolidation for this week so far. As of writing, the pair has produced a bearish engulfing candle right at the resistance of SMA 30. Thus, the sellers may go short if the price goes below 0.59275. The price may find its next support around 0.56350.
On the upside, if the price breaks SMA 30’s resistance, it may find its resistance at the trend line. Thus, the buyers may not find entries with excellent risk-reward for the time being.
Does the Support Hold the Price?
The H1 chart shows that the price finds its support around 0.59400 earlier today. It made a good bullish move. However, the price has come down again. It trades around the level. Another bounce followed by a breakout at today’s high may attract the buyers to go long in the pair. The question is whether the support is strong enough to push the price towards the North or not.
On the downside, a breakout below today’s low may attract the sellers to go short and drive the price towards the South with good bearish momentum.
The H1 chart is neutral but the H4 chart is bearish. Considering both charts, it seems that the Bear is way ahead of the Bull. The pair may make another bearish move and end up making a new lower low.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn