Market Analysis: The Bearish Retracement in NZDUSD has Concluded
The NZDUSD currency pair has experienced a significant breakout following an extended period of consolidation that lasted from mid-February to late August 2024. This consolidation phase was characterized by a relatively tight range, with the price confined below a crucial resistance level at 0.62120. However, as we moved into late August, the pair broke decisively above this key resistance level, signaling a shift in market price action.
NZDUSD Significant Zones
Resistance Levels: 0.62120, 0.63410
Support Levels: 0.60520, 0.589120
The 0.62120 level had previously served as a strong resistance within the consolidation zone, and its breach marked the beginning of a renewed bullish momentum. Following the breakout, the NZDUSD price briefly pulled back but found support at a bullish breaker block. This zone, acting as recent support, confirmed the resumption of the broader bullish trend, reinforcing market confidence in further upside potential.
The 4-hour timeframe offers a clear view of this bullish momentum, as price action has convincingly broken a short-term bearish trendline. This shift from bearish to bullish sentiment aligns with technical indicators, particularly the 4-hour Moving Average, which has turned bullish with the price trading firmly above it.
Market Expectation
Looking ahead, the NZD/USD is poised for further upward movement, with the next key target being the supply zone around the 0.63410 level. This level is expected to act as a potential resistance in the near term, but current bullish momentum suggests that the pair is likely to breach this level before encountering any significant bearish pressure. This area should be monitored closely for forex signals for any signs of a reversal or continuation of the bullish trend.
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