Price Analysis – NZDUSD Remains in Consolidation as Market Stays Indecisive
NZDUSD remains indecisive as bears cancel out bullish effort in the market. The market remains in the lower half of a larger market consolidation between the 0.7300 and 0.69400 key level. But unlike the previous experience on the lower half of the channel, the market has taken more than twice the number of trading days, 37 to 15. The 0.70550 resistance is doing a good job of pinning the market down.
NZDUSD Significant Levels
Resistance Levels: 0.7550, 0.71300, 0.73000
Support Levels: 0.67800, 0.6880, 0.69400
There have been series of attempt at moving out of this mini consolidation, which can be seen with the wicks of some daily candles piercing through both the resistance and support. The latest attempt at breaking to the upside on the 4th of August 2021 ended in futility two days after. Price was knocked down. Currently, the market is trading at 0.70052 and trying to have another go at the 0.70550 resistance level.
The Bollinger Band also insulated the support and resistance to limit the price movement, and it will take a little more effort that the piercing of the wicks to push the market to the upside or the downside. Even though price is currently displaying a bullish candle, the MACD is had reducing histogram bars on display, this means that the bullish power behind the market is dwindling, thereby giving a bearish bias.
Market Expectations
On the 4-hour chart, the market can be seen bouncing up and down from the middle line of the Bollinger Band. The market is currently below it and a step to breaking up from the consolidation is to move up the line and rebound from it upwards. The market could as well take a dive from this point with a view to breaking downward. This will, however, require much impetus from either the bulls or the bears.
At present, the market has the tendency to keep ranging, but price will first get to 0.70550 before falling again.
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