- NZD/USD has been having a bullish correction.
- The pair trades well below the SMA 30’s resistance.
- The H1 chart looks to be getting ready to extend its bullish move.
- Intraday minor charts have been bullish.
NZD/USD -Technical Analysis- H4 chart
The chart shows that the price headed towards the South with good bearish momentum. On its way, it breached the simple moving average 30’s support and continued its move. As of writing, it has been having a bullish correction. Since the SMA 30’s resistance offers enough space for the price to travel towards the North, it may extend its bullish correction. However, based on this chart, traders may not get themselves engaged to go long in the pair. To get better risk-reward, they may wait for the chart to produce a bearish reversal pattern at the value area and to go short in the pair.
Price Action Analysis- H1 Chart
The H1 chart shows that the price consolidated at 0.62450 and produced a bullish engulfing candle. Since then, it has been heading towards the North. It may find its resistance around 0.62780. However, the price action suggests that it may end up making a breakout and continue its move towards the North. In case of a bullish breakout, it may find its resistance around 0.63000.
On the downside, if the level of 0.62780 produces a bearish reversal signal, the sellers may jump into the pair and drive the price towards the last swing low. It means that the pair has more space to travel towards the North.
Technically, the H4 chart is bearish, but it is to find its resistance. Meanwhile, the H1 chart looks good for the buyers. Thus, we may see that the pair continue its bullish correction on the H4 chart. It may make the pair remain bullish on the minor charts.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn