NZDUSD Analysis – The Previous Support Zone at 0.6740 Is Likely to Turn Into a Resistance Zone
NZDUSD previous support zone is likely to turn into a resistance zone at 0.6470. The market created a resistance zone at $0.7200 above several consecutive bullish candles. The resistance that formed on the 20th of October was tested again on the 28th of October 2021. The stochastic indicated that the market was oversold at the same time. The resistance zone initiated the bearish move. Price paused the bearish action for a few days upon reaching 0.7070. The support created at 0.7070 was too weak; hence the price dropped below the support zone. After bridging the 0.7070 level, the support zone functioned as a resistance zone.
NZDUSD Major Market Zones
Resistance Zones: 0.7300, 0.7200 0.6860
Support Zones: 0.7070, 0.6470, 0.6540
The market created a bearish swing into 0.6740. The market consolidated for a long time between 0.6860 and 0.6740. The bulls and bears were at a break-even. The bears eventually regained energy and went short after creating a false breakout on the 13th of January. The support zone at 0.6740 was violated.
The market dropped to 0.6450. At this point, the market had created a prominent channel on the daily timeframe. The market bounced off the trend line at 0.6450, and the buying pressure pumped the market to the previous support zone at 0.6740. Within the bearish channel, a bullish channel has been formed. On the daily chart, the stochastic indicates the market is currently oversold.
What to Expect From NZDUSD Market
The smaller channel has crossed within the bigger channel. This occurs at the 0.6740 zone. The market is bullish on the four-hour chart. The daily time frame is still bearish. The Stochastic is still indicating the market is oversold, just like the daily. The Parabolic SAR is seen to conduct the price to the previous support zone. The bears are likely to utilize the previous support as a resistance zone to go short towards 0.65400.
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