- NZD/USD is in consolidation around a flipped resistance.
- Simple Moving Average 30 has been working as resistance.
- The H1 chart has had its second bounce at a pivotal support.
- Intraday price action has been choppy.
NZD/USD-Technical Analysis-H4 Chart
The H4 chart shows that the pair made a move towards the South upon making a breakout at the last week’s low. As expected, the price consolidates around that level. The sellers may wait for the chart to produce a bearish reversal candle to go short below 0.58550. Simple Moving Average 30 has been working as a resistance as well. It may attract more sellers to sell the pair off. Thus, if the pair make a bearish move from here, it may generate significant momentum. The price may find its next support around 0.57600.
On the contrary, if the price breaches the horizontal breakout level, it may get choppy. As long as it stays below SMA 30, it may not create a bullish momentum and attract the buyers to go long on the pair.
Price Action Analysis-H1 Chart
The H1 chart shows that the price has had double bounces at 0.58625. At the second bounce, it produced a bullish engulfing candle and headed towards the North. The price then made a bearish correction. It seems that the price consolidates around the neckline. If the price goes above 0.59000, the buyers may look to go long on the pair and push the price towards the North. The price may find its next resistance around 0.59350.
On the downside, if the price breaches the horizontal support, it may head towards the South and find its next support around 0.57950.
The bear looks strong on the H4 chart. However, the bear looks strong on the H1. Sellers are to wait for the price action around the H4’s resistance and the buyers are to wait for the price action around the H1’s support followed by breakout to make a trading decision.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn