- The H4 seems to have found its strong ground to get bullish
- Simple Moving Average has been working as a support
- The H1 chart favors the bull
- A bullish trend line on the H1 chart may push the price towards the North
NZD/USD- Technical Analysis- H4 Chart
The pair after being bearish on the H4 chart for some weeks found its support around 0.58850 and had a bounce twice. At the second bounce, it produced a bullish engulfing candle and made a breakout at the neckline. The price then consolidated and produced another bullish engulfing candle right at the neckline. The pattern is a copybook pullback continuation, which could have attracted the buyers to go long. However, as of writing, the price has been having a bearish correction. The buyers may be waiting for the price to produce a bullish reversal pattern at the confluence level of Simple Moving Average 30 and horizontal support. In case of a bullish move from that value area, the price may find its next resistance around 0.60750.
On the downside, if the pair makes a bearish breakout at the last swing low, the sellers may drive the price towards the South again. The price may find its next support around 0.57700.
Price Action Analysis-H1 Chart
The chart shows that upon finding a strong horizontal support, it made a bullish move. It made a bearish correction followed by another bullish move. A bullish trend line is evident. Buyers may wait for the price to produce a bullish reversal at the trend line’s support to go long. The H1 chart suggests that it may find its next resistance around 0.60300.
On the downside, if the price makes a bearish breakout at the trend line, the sellers may go short upon having breakout confirmation. The price may find its next support around 0.58850.
The H4 and the H1 both look good for the buyers. Another bullish move from here may change the trend on the H4 chart, which has been active for the last six weeks.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn