Market NewsTechnical Analysis

NZD/USD: Choppy Price Action around a Massive Horizontal Support

  • NZD/USD has been choppy around a massive horizontal support on the H4 chart.
  • The pair seems to be producing a double bottom with bullish divergence.
  • The H1 chart looks good for the buyers.
  • Intraday minor charts have been bullish.
NZD/USD H4 Chart
NZD/USD H4 Chart

NZD/USD- Technical Analysis-H4 Chart

The chart shows that the price has been choppy recently. It made a bearish move breaching the simple moving average 30. However, a massive horizontal support may have held the sellers back to drive the price towards the South. As of writing, the pair has been having a bullish correction. Since it has been traded around the last swing low after a long bearish move, the correction may be extended. It means, the pair may end up making a bullish breakout at the SMA 30.

Looking at the scenario, a bullish breakout at the SMA 30 may not produce a significant momentum. However, a breakout above 0.58600 may make the pair bullish and push the price towards the North. The price, in that case, may find its resistance around 0.59250.

On the contrary, a bearish breakout at the last swing low may drive the price towards the South. The price may find its support 0.56500.

NZD/USD H1 Chart
NZD/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the North with good pace upon finding its support around 0.57850. The level of 0.68240 may work as a resistance here. If the level produces a bearish reversal pattern, the sellers may drive the price towards the level of 0.57850 again.

On the contrary, if the price breaches the level of 0.57850, the buyers may wait for the price to consolidate followed by a bullish reversal pattern at the breakout level to go long in the pair. The price may find its resistance around 0.58500.

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

Contact and follow Tareq on Twitter: @tareqfpn

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