NZDUSD Begins Another Reversal in a Descending Channel

NZDUSD Analysis – Price Begins Another Reversal as It Keeps a General Downtrend

NZDUSD begins another round of wavy movement as it obeys the borders of its descending channel. A downward session ensued when the price got to 0.69460. At 0.69460, the resistance level confluence with the upper border of the descending channel to defend the market. Therefore, the market dipped towards the lower border of the channel.

NZDUSD Key Levels

Resistance Levels: 0.67140, 0.71500
Support Levels: 0.62990, 0.62820
The struggles of the bulls against the bears have been less impactful, and the market keeps going in the direction of the bears’ influence. This has been the situation since the beginning of last year. Nevertheless, some key levels have been very influential in the direction of the market. The 0.71500 significant level initially acted as support early in 2021 till the price was pushed below it.

Afterward, the 0.71500 turned into resistance to the flow of the market. At that time, the 0.67140 key level was prominent support for NZDUSD. Thus, the market was largely confined to this zone for some time before prices sank below the support. 0.67140 now acts as a major resistance to the uptrend of the market. Bearish dominance is well depicted by the MACD (Moving Average Convergence Divergence). However, it also shows an impending market revival with an upward cross of its lines.

Market Expectations

NZDUSD begins its upward movement from the 0.62290 support level, which is slightly below the lower border of the descending channel. The uptrend of the price has been one of pullback and breakout as the market navigates itself between key levels. The EMA (Exponential Moving Average) period 20 has taken a position below the 4-hour candles to further strengthen its resolve to rise. The immediate target is the 0.67140 significant level.

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