NZD/USD: Choppy Price Action, Bull May Come Along

• NZD/USD has been choppy on the H4 chart.
• The pair trades below Simple Moving Average 30.
• The H1 chart may be producing a Double Bottom.
• Intraday minor charts seem bullish.

NZD/USD- Technical Analysis- H4 Chart

The pair seems to be trading around the simple moving average 30 for quite a while. As of writing, the pair trades below the SMA 30. However, since the price has not been reacting to the moving average, so it may not make an impact. The price consolidates. Traders may want to wait for the price to make a breakout at consolidation support or resistance to find some entries.

By looking at the H4 chart, it seems that traders have been struggling to find its direction. As things stand with the pair, it may not offer lucrative risk-reward on the H4 chart.

Price Action Analysis- H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the South by obeying a trend line. It has found its support at 0.59250. The chart shows that the price reacted at this level several times. At the second bounce, it produced a bullish engulfing candle. However, the buyers may wait for the price to make a breakout at 0.59400 first. It would be considered as a neckline breakout. Since there is a bearish trend line, the buyers may not be sanguine unless it makes  a bullish breakout at the trend line as well. If that happens, then the buyers may push the price towards the North. The price may find its resistance around 0.59800.

On the downside, if the price makes a bearish breakout at the horizontal support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern to go short in the pair. The price may find its support around 0.59000.

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

Contact and follow Tareq on Twitter: @tareqfpn