- NZD/USD is traded around a horizontal support.
- The pair trades below the simple moving average 30.
- The H1 chart looks bearish producing consecutive eight bearish candles.
- Intraday minor charts have been bearish.
NZD/USD- Technical Analysis-H4 Chart
The chart shows that the price had a bounce at 0.58720 yesterday. As of writing, the pair trades around that support again. Thus, the pair may make a big decision and find its next direction. If the price breaches the horizontal support, the sellers may be keep to go short in the pair and drive the price towards the South. The price may find its support around 0.57000.
On the upside, if the chart produces a bullish reversal pattern right at the horizontal support, the buyers may look to go long in the pair and push the price towards the North. The buyers may consider a breakout above 0.59170 as a neckline breakout of a double bottom. Thus, it might generate good bullish momentum and push the price towards the upside. The price may find its resistance around 0.59600.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the last swing low with an extreme bearish momentum. The level of 0.58720 may hold the price as a support. The sellers may wait for the price to consolidate and make a bearish breakout at the support to go short in the pair. As things stand, it seems that a breakout at the horizontal support is imminent. If that happens, the price may find its support around 0.58000.
On the contrary, if the level holds the price as a support, the buyers may wait for the chart to produce a bullish reversal pattern to go long in the pair. The price may find its resistance around the last swing high which is 0.59170.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn