NZD/USD: Bear Steps in, Does it Make a Run?

• NZD/USD is traded within a horizontal channel on the H4 chart.
• The pair has had a bounce at the channel’s support.
• The simple moving average 30 has been working as a resistance.
• The H1 chart looks bullish.

NZD/USD -Technical Analysis- H4 chart

The pair is traded at a critical level. The chart shows that it has been traded within that horizontal channel. The channel’s support has produced a bullish engulfing candle. However, the simple moving average 30 has been working as a resistance. A breakout above may push the price towards the channel’s resistance and it may end up making a breakout there. In that case, the price may find its resistance around 0.63000.

On the contrary, if the SMA 30 produces a bearish reversal pattern, the sellers may wait for the price to make a breach at the channel’s support to go short in the pair. The price may find its next support around 0.60350.

Price Action Analysis- H1 Chart

The chart shows that the price upon finding its horizontal support made a good bullish move. On its way, it made a significant breakout at 0.61610. As of writing, the pair is about to produce a bullish reversal candle at the level. Thus, the buyers may go long in the pair and push the price towards the North. It may find its next resistance around 0.62000.

On the contrary, if the price breaches the flipped support and makes it a resistance, the sellers may look for short opportunities. Considering the H1 chart, it looks good for the buyers.

The H4 chart still looks good for the sellers. However, the H1 chart seems to be in a hurry to go towards the North. Thus, we may see that the pair gets bullish and remain bullish for a while.

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

Contact and follow Tareq on Twitter: @tareqfpn