Market NewsTechnical Analysis

NZD/USD: Traders to Keep an Eye on a Horizontal Resistance

  • NZD/USD has been bullish on the H4 chart.
  • The pair has had a rejection at a horizontal resistance.
  • The H1 chart may make a bearish move.
  • Intraday minor charts have been bearish.
NZD/USD H4 Chart
NZD/USD H4 Chart

NZD/USD- Technical Analysis-H4 Chart

The H4 chart shows that the price upon finding its horizontal support around 0.58500 made a bullish move. On its way, it made a bullish breakout at the simple moving average 30. It then made a bearish correction and produced a bullish engulfing candle right at the SMA 30’s support. The buyers waited for the opportunity to go long in the pair. Later, it produced a bullish inside bar and the buyers pushed the price towards the North in a hurry.

The price found its resistance around 0.60485. It was expected since the price reacted at this level earlier as well. The chart produced a long bearish candle. However, as of writing, the chart produced another bullish inside bar. It may head towards the North.

The buyers may wait for the price to make a bullish breakout at the horizontal resistance to go long in the pair.

NZD/USD H1 Chart
NZD/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price was heading towards the North by obeying a bullish trend line. Upon finding its horizontal resistance, it made a bearish move and went beyond the trend line. It may not be a considered as a breakout since the price did not make a breakout with a momentum. However, the trend line is invalid now. Thus, the sellers may look to go short in the pair based on this chart. As of writing, the price is having consolidation. A breakout below consolidation support may drive the price towards the South. The price may find its support around 0.59600.

On the other hand, the price may gradually head towards the North and reach at the last swing high. If that happens, traders must wait either to get a bullish breakout to go long or a bearish reversal pattern to go short in the pair.

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

Contact and follow Tareq on Twitter: @tareqfpn

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