- NZD/USD has been bullish on the H4 chart.
- The pair trades above the SMA 30.
- The H1 chart looks bullish approaching the last swing high.
- Intraday minor charts’ price action has been bullish.
NZD/USD-Technical Analysis-H4 Chart
The pair found its horizontal support around 0.58550 and made a bullish move. On its way, it made a significant bullish breakout at the Simple Moving Average 30. The price then came back and produced a bullish reversal pattern to offer long entries to the buyers. The chart shows that the price has been heading towards the North gradually. It may find its next resistance around 0.59650.
On the downside, if the last swing low works as a resistance and ends up producing a bearish reversal pattern followed by a bearish breakout at the SMA 30, the bear may come into play and drive the pair towards the South. The price may find its support around 0.59550 again. A breakout at that level may generate more bearish momentum and drive the price towards 0.58000.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the North with decent momentum. It produced a double bottom and made a breakout at the neckline. The buyers may push the price towards the last swing high. It is a level, which may make the pair wait. A bullish breakout may attract the buyers again to push the price towards 0.59500.
On the downside, if the level works as resistance and ends up producing a bearish reversal pattern, the sellers may drive the price towards the South. It may find its support around 0.59000.
Considering both charts, it seems that the bull is ahead of the bear. The bear only may take over or show dominance to some sort if the last swing high on the H1 chart produces a strong bearish reversal pattern. Meanwhile, the buyers are going to keep their eyes on the pair to go long and push the price towards the upside.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn