- NZD/USD has been heading towards the upside on the H4 chart.
- The pair made a significant bullish breakout at a horizontal resistance.
- The H1 chart looks bullish traded over yesterday’s high.
- Intraday minor charts may make some bearish corrections.
NZD/USD -Technical Analysis- H4 chart
The chart shows that the pair produced a bullish engulfing candle at 0.58500. It then produced consecutive bullish candles. On its way, it made a significant bullish breakout at 0.59975. As of writing, the pair trades above the level. Thus, the buyers may wait for the price to make a bearish correction and produce a bullish reversal pattern at the flipped support to go long again. If that happens, the pair may find its next resistance around 0.62000.
On the downside, if the price breaches the horizontal support, it may get choppy. The simple moving average 30 may still work as support. Thus, a bearish breakout at the horizontal support may not generate that bearish momentum.
Price Action Analysis- H1 Chart
The chart shows that the price after being very bullish had a rejection around 0.60100. It made a little bearish correction as expected. Upon finding its support, the par has headed towards the North again breaching the level of 0.60100. As of writing, the pair trades above the level. The buyers are going to keep their eyes on the price action around the level to go long on the pair. A bullish reversal pattern may push the price towards 0.60530.
The sellers may not find short opportunities with lucrative risk-reward soon. They should be very patient with the pair before making any trading decision based on the H4 or H1 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn