NZDUSD Breaks Out of the Market Range Through the Support Level

NZDUSD Analysis – Price Breaks Out From Consolidation Through the Support Level

NZDUSD breaks out of the market range on the 21st of January. The market pierced through the upper bands of the Bollinger on February 24th, 2021. The bulls got exhausted and this caused a plunge in the market. Before the fall, the stochastic indicator signaled that the market was already overbought. This was the same as with the relative strength index. The market had been very bullish before the reversal. The demand zone was utilized by the bulls to skyrocket the price from 0.66050. The market has shown general weakness after the reversal.

NZDUSD Major Levels

Resistance level: , 0.71950.70650, 0.68650
Support level: 0.66050, 0.67350, 0.69250
A downtrend has formed from the previous year into the current year on the daily time frame. On October 19th, the price breaks out from the channel’s upper border. The bears quickly recovered and the price dropped rapidly to 0.67350. The bearish run was unhindered by all the major levels till it reached the support level. The market was range-bound all through December and into late January. The market has currently violated the support level with four bearish candles.

NZDUSD Market Expectation

The short-term market range is clear on the four-hour chart. The major level at 0.67350 has been bridged. The lower border of the downward channel is currently being tested. The border has supported bullishness multiple times. It has halted multiple bearish runs successfully since the previous year.

The Stochastic and Relative Strength Index are slightly above the oversold region. This might cause a bounce in the price back to 0.67350. If the support of the channel fails, it would cause a break from the channel. This would likely cause the market to draw towards the lower support level at 0.66050.

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