NZDUSD Analysis – The Market Receives Reinforcement at the 0.62290 Weekly Support Level
NZDUSD receives reinforcement at the 0.62290 weekly support level. The market finally has a platform from which it can receive reinforcement against its long-drawn bearish tide. The price first reaches this weekly support after it drops precipitously upon rejection from the confluence point of the upper frame of its descending channel and the 0.69460 resistance zone.
NZDUSD Major Zones
Resistance Levels: 0.69460, 0.65330, 0.64010
Support Levels: 0.62820, 0.62990, 0.61400
The market bears might finally have a worthy opponent after it touches down at the 0.62290 weekly support level. Before this point, NZDUSD has been able to defy all the critical zones as the market undulated downward through a descending channel. In doing so, the coin makes consistent lower highs and lows. Finally, the currency pair is in a falling cycle when it drops to the weekly key support level.
The downward momentum in the market as the price drops is strong enough that the daily candles break through the channel's lower border. This was only halted at the 0.69460 key level. From here, NZDUSD receives reinforcement with which it pushes upwards. This was also short-lived as the price fails to grow past the 0.65330 level, where it bounces off a barrier. The market breaks beyond the lower frame again but stabilizes above 0.62290.
The 4-hour chart captures the current increase in the market. There is an initial rejection at 0.64010, but the price has another go against the resistance level. The RSI (Relative Strength Index) line likewise receives reinforcement at the zero level and is expected to climb. The Stochastic is also expected to enter the overbought territory. All indications point to a bullish drive to 0.65330.
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