NZD/USD: Bull Accelerates but Will it Continue?

• NZD/USD has been bullish on the H4 chart.
• The pair trades above the Simple Moving Average 30.
• It breaches the last week’s high.
• Intraday price action has been bullish.

NZD/USD-Technical Analysis-H4 Chart

The chart shows that the price has been heading towards the North with moderate momentum. On its way, it made a breakout at the last weeks high at 0.59400. Upon making the breakout, the pair has gathered decent momentum to head towards the upside. The buyers may keep their eyes on the pair to go long from the value areas. The price may find its next resistance around 0.60600. On the downside, the sellers must be very cautious about making any trading decision. The pair may  make some bearish corrections or consolidate. However, to get a lucrative risk-reward, the sellers must wait for the pair to produce a strong bearish reversal pattern at the key resistance level.

Defensive buyers may wait for the price to make a bearish correction followed by a bullish reversal pattern at the last week’s high to go long and push the price towards the upside.

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a bullish trend line. At the last bounce, it produced a bullish engulfing candle. Since then it has been heading towards the North with good momentum. The buyers are to wait for the price to consolidate and produce a bullish reversal candle to go long. As things stand with the pair, the pair may make a long bearish correction to find its next support. If it comes around the trend line’s support and produces a bullish reversal pattern at the trend line’s support, the buyers may push the price towards the North again with good momentum. It may end up making a new higher high. The price may find its next resistance around 0.60300.

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

Contact and follow Tareq on Twitter: @tareqfpn