Market NewsTechnical Analysis

NZD/USD: Bear Dominates with Strong Momentum

  • NZD/USD produced a huge bearish engulfing candle on the H4 chart.
  • The pair may remain bearish for a while as the swing low has enough space to offer.
  • The H1 chart looks bearish producing a bearish trend line.
  • Intraday minor charts have been bearish.
NZD/USD H4 Chart
NZD/USD H4 Chart

NZD/USD -Technical Analysis- H4 Chart

The chart shows that it produced a double top at the simple moving average 30’s resistance and breached the neck line with a huge bearish engulfing candle. The current candle has been bearish as well. The sellers will be eyeing on the pair to go short from the value areas. The chart shows that the swing low has enough space for the price to travel towards the South. Thus, the sellers will be interested more, which may create good momentum.

For the buyers, it does not look good. It would need time to offer something to the buyers. Thus, they must be patient and see how it goes for a while.

NZD/USD H1 Chart
NZD/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price was moving towards the South gradually earlier. Today, it produced a bearish engulfing candle breaching some significant level of supports. A trend line can be drawn here. Traders are going to keep their eyes on this trend line as it may play a vital role in this pair. As of writing, the pair seems to be having a bullish correction. The sellers may wait for the price to produce a bearish reversal signal to go short in the pair.

The buyers my not get themselves engaged in buying in this pair. The trend line along with some significant broken supports that are resistance now, may not let the price move towards the North smoothly.

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

Contact and follow Tareq on Twitter: @tareqfpn

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