Market NewsTechnical Analysis

NZD/USD: At a Point to Find Its Next Direction

  • NZD/USD has produced a double bottom despite being bearish on the H4 chart.
  • The SMA 30 still works as a resistance.
  • The H1 chart looks bullish finding its resistance.
  • Intraday charts are yet to find their direction.
NZD/USD H4 Chart
NZD/USD H4 Chart

NZD/USD -Technical Analysis- H4 Chart

The chart shows that the price has been bearish for a long time by obeying the simple moving average 30. As of writing, the pair trades right around the moving average’s resistance. Thus, traders are going to keep their eyes on the price action to find its next direction. The pair produced a doji candle. A bearish reversal candle may attract the sellers to go short in the pair. The price may find its support around 0.60000 next.

On the contrary, if the price breaches the SMA 30, the buyers may wait for the breakout confirmation followed by a bullish reversal pattern to go long in the pair. In that case, the pair may find its resistance around 0.61800.

NZD/USD H1 Chart
NZD/USD H1 Chart

Price Action Analysis- H1 Chart

After being long bearish, the pair had a bounce at 0.60600 twice. At the last bounce, it produced a Morning Star and headed towards the upside in a hurry. However, the level of 061020 has been working as a resistance. As of writing, the pair trades around the level. A bullish breakout may push the price towards the North. The price may find its resistance around 0.61300.

On the other hand, a bearish reversal signal may drive the price towards the South. However, it may not be a long move since there is a strong resistance where the price reacted twice. A bearish breakout at that level may attract more sellers and drive the price towards the downside with good momentum.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

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