NZD/USD: Bear is Getting Ready to Make a Move towards the South

• NZD/USD seems to be bearish on the H4 chart.
• The pair trades around the last swing low, but trades below the simple moving average 30.
• The H1 chart looks bearish.
• Intraday minor charts have been bearish.

NZD/USD- Technical Analysis-H4 Chart

The pair had double bounces at 0.59720. At the second bounce, it produced a spinning top and headed towards the South. However, the price still trades above the last week’s low as expected. The sellers may wait for the price to breach the level and go short in the pair. The chart also shows that the pair trades below the simple moving average 30. It may attract more sellers to keep an eye on the pair for short opportunities. A bearish breakout below the last week’s low may drive the price towards 0.57320.

On the contrary, if the support level holds the price and produces a bullish reversal pattern, the buyers may keep an eye on the pair to go long above the SMA 30. In that case, the price may find its resistance around 0.59300.

Price Action Analysis- H1 Chart

The chart shows that the price after being very bearish had a bounce at 0.58110. It produced a bullish spinning top followed by another one. As of writing, the current candle seems to be bullish as well. The chart suggests that the price may find its resistance around 0.58300. A bearish reversal pattern at the level may attract the sellers to go short in the pair. The price may find its support again around 0.58110. A bearish breakout at that level may generate more bearish pressure and drive the price towards the South further.

On the other hand, if the level of 0.58300 does not work as a resistance but the price breaches the level, the buyers may wait for the price to produce a bullish reversal pattern there to go long in the pair. The price may find its resistance around 0.58650.

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

Contact and follow Tareq on Twitter: @tareqfpn