NZDUSD Analysis: Buy Traders Heads Back Towards the 0.62030 Key Zone
NZDUSD buy traders head back towards one of the market’s strong clasps. The price tendency is now trading back to the 0.62030 key zone even though the overall strength of the New Zealand price indicates a bearish propensity. The buy traders are trying to neutralize the selling strength by causing a pullback towards the 0.62030 key zone. This key level has proved to be a stronghold because the buyers had once projected their trade to this level but eventually got rejected. A break may, however, occur if more bullish activity persists on the NZDUSD pair.
NZDUSD Key Zones
Resistance Zones: 0.69600, 0.65720
Support Zones: 0.62200, 0.60600
The sellers’ creating several selling declines is not something that happened overnight. They have been posing their strength for 2021. The bearish predisposition first appeared lower after they broke through the 0.69600 key zone. Following this breakthrough, more falls keep coming into play, especially following the retest in this key zone. The price decline continued as the price shoved through the 0.65720 key level.
As the daily chart shows large bearish displacement, more downtrend growth continues to flow. With a drop-down to 0.60600, the buyers are now trying to cause a retracement to the stronghold that’s been broken by the sellers. However, more selling tendencies will still be considered following the pullback to the 0.62030 key level. The stochastic oscillator shows buyers holding strength currently in price as buying activities continue.
The NZDUSD price is predicted to hit back at the 0.62030 key level following a bounce off from the middle level of the Bollinger Band indicator. The Stochastic indicator is raging up to the 100 level as overbought is finally setting in on the 4hr chart. A pullback is therefore anticipated as the trade continues.
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