- The pair had a double bounce at a key level of support
- A bearish trend line has been working as resistance
- Intraday price action has been choppy
- Traders are to be patient to find its next direction
NZD/USD: A Bearish Trend Line Works as Resistance
The pair made a long bearish move in the H4 chart. The price had a double bounce at horizontal support 0.59000. As expected, the price made a bullish correction after the second bounce. The chart shows that the price has been obeying a bearish trend line. As of writing, the pair trades around that trend line. A bearish reversal pattern at the trend line’s resistance may drive the price towards the South. A bearish breakout below 0.59000 may make the pair remain bearish for a while. The price may find its next support around 0.57000.
On the upside, if the price makes a bullish breakout at the bearish trend line, the buyers may push the price towards the North and keep the pair bullish for some days. The price may find its next resistance around 0.61000.
The H1 Chart Ranges Hard
Since the H4 chart gets trapped within a horizontal support and trend line’s resistance, the H1 chart has been choppy for that. The pair trades within a horizontal channel. A breakout above may push the price towards the North. The price may find its next resistance around 0.60000.
On the downside, if the price makes a bearish breakout at the horizontal support 0.59000, it may make a strong bearish move and find its next support around 0.57700. Meanwhile, the H1 traders should patiently monitor the market.
The H4 chart looks good for the Bear as long as the trend line works as resistance. The H1 chart looks neutral. In a nutshell, the pair is still bearish. Nevertheless, a bullish breakout at the trend line may change the whole picture and make the pair remain bullish for some days.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn