Market Analysis: Buyers Face Challenges
NZDUSD Buyers are gaining momentum following the formation of a reversal pattern. However, sellers are exerting pressure on the buyers, resulting in the recent formation of a symmetrical triangle pattern. This indicates that significant volatility is expected in the price of the currency pair.
NZDUSD Significant Zones
Resistance Levels: 0.60500, 0.62000
Support Levels: 0.58800, 0.58000
In recent trading sessions, the NZDUSD witnessed the cessation of its preceding bearish trend as it approached the demand level at 0.58800, forming a double-bottom reversal pattern. This pattern indicates a shift in momentum, propelling a bullish surge in the price. Notably, this positive trend emerged despite a concurrent decline in market volatility as the pair encountered resistance near the 0.60500 mark.
A closer examination of the daily Relative Strength Index (RSI) reveals that the pair is currently trading at the threshold level of 70.0, indicating an overbought condition that could presage a potential bearish correction. Nevertheless, this anticipated bearish move may be transient, serving as a pullback within a broader bullish context. Reinforcing this perspective, the daily Moving Averages present a bullish outlook, which, in conjunction with the double bottom pattern, furnishes a robust signal for continued bullish momentum.
Market Expectation
The 4-hour chart unveils the formation of a symmetrical triangle pattern. This consolidation phase suggests an accumulation of momentum, often preceding a potential bullish breakout, aligning with the overall bullish sentiment identified in the market.
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