- NZD/USD has consolidated and produced a bearish candle on the H4 chart.
- The pair trades below the simple moving average 30.
- The H1 chart may end up producing a double top.
- Intraday minor charts have been bearish.
NZD/USD- Technical Analysis-H4 Chart
The H4 chart shows that the price consolidated around 0.59200 for a while. As of writing, the price has been very bearish. It suggests that the pair might end up producing a bearish reversal candle. If that happens, the sellers are going to go short and drive the price towards the South further. The price may find its next support around 0.58000. Notably, the pair trades below the SMA 30, which may attract more sellers to look for short opportunities. It means the pair may make a strong bearish move from here.
On the upside, the buyers must wait for the price to produce a strong bullish reversal candle closing above the resistance at 0.59200. As things stand, it is going to take time to happen. Thus, either they wait or skip the pair to make any buying decision based on the H4 chart.
Price Action Analysis- H1 Chart
The chart shows that the price made a long bearish move. A bearish trend line has been working as resistance. The price seemed to make a false breakout. It has come down again. As of writing, the pair trades below the trendline. It means the sellers are going to keep their eyes on the pair to go short based on the H1 chart. Moreover, the horizontal level of 0.59200 has been working as a strong level of resistance. The price has had its second rejection. Thus, a breakout below the swing low, may be considered as a neckline breakout of the double top. The price may find its next support around 0.58300.
Both charts look good for the sellers. The way things have been going with the pair on the H4 and H1 chart, it seems that the pair may end up having a bearish day today.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn