NZDUSD Analysis – The Market Keeps Marching Upward but Encounters Resistance at 0.69460
NZDUSD keeps marching upward but faces potential resistance at the 0.69460 key level. This upward momentum started after the price touched down at 0.65330 and effected a reversal. The price started bouncing up a trendline, making consistently higher highs and lows. With these, the NZDUSD kept breaking through critical levels. It’s now nearing a key resistance point at 0.69460, which is crucial.
Important NZDUSD Levels
Resistance Levels: 0.71500, 0.70490, 0.69460
Support Levels: 0.68000, 0.67140, 0.65330
Sellers in the market used a slanting double top formation to redirect the market after the price failed to get through the 0.71500 resistance level convincingly. The pair then slumped and broke through the formation neckline at 0.69460. A strong support level halted the price decline at 0.67140, but only for a short time. By late January, the price violated the support and keeps falling till it reaches 0.65330.
From 0.65330, buyers immediately rallied to drive the market upward. From there, NZDUSD has been trudging upwards. The MA Cross (Moving Average) shows robust upward momentum in the market. Having crossed upward on the 16th of February, the Moving Averages have formed a support for the daily candles. As prices rise, the dots on the Parabolic SAR (Stop and Reverse) keep switching places around the candles.
Market Expectations
In conjunction with the key levels, the uptrend line has been acting as the support for the market. Having just bounced off the trendline, the price is now making its first approach towards the resistance level. The price is expected to retrace before firing more shots towards the 0.69460 resistance level. Success at this level will set the price against another resistance at 0.71500.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
Leave a Reply