Market NewsTechnical Analysis

NZD/USD: Sellers Wait to Go Short from Value Areas

  • NZD/USD has found its horizontal resistance on the H4 chart.
  • The pair trades below the simple moving average 30.
  • The H1 chart looks very bearish.
  • Intraday minor charts made some significant bearish moves in Tokyo session.
NZD/USD H4 chart
NZD/USD H4 chart

NZD/USD -Technical Analysis- H4 chart

The chart shows that the price has been heading towards the South gradually. It found its horizontal resistance around 0.62000. Afterwards, it made some bearish moves followed by bullish corrections. At the last rejection at the SMA 30’s resistance, the pair produced a bearish engulfing candle. Since then, it has been heading towards the downside again. The pair may find its support around 0.60200.

On the contrary, the buyers must wait for the pair to make a significant bullish move or a strong bullish reversal pattern at the value areas to look for long opportunities.

NZD/USD H1 chart
NZD/USD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price made a strong bearish move upon finding its resistance around 0.61350. On its way, it made a significant breakout at 0.61075. As of writing, the pair trades below the level. The sellers may keep their eyes on the price action around that breakout level. A bearish reversal pattern at the flipped resistance may drive the price towards the South. The price may find its next support around 0.60500.

On the contrary, if the price breaches the level, the buyers may wait for the chart to produce a bullish signal to go long in the pair. The pair may find its resistance again around 0.61350.

Considering both charts, it seems that the sellers are going to dominate in the pair. However, it may make some bullish corrections before getting bearish again.

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

Contact and follow Tareq on Twitter: @tareqfpn

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