Market Analysis – Kiwi Sellers Are in Defensive Mode
NZDUSD bulls struggle to conquer key levels amidst balanced momentum. The buyers in the NZDUSD market are yet to fully conquer the 0.62300 market zone. Despite recent attempts by the bulls to breach this key level, they have gone fain. As a result, they have been unable to make significant progress. The daily chart currently reflects a picture of buyers missing out on the opportunity to push the price higher.
NZDUSD Key Zones
Resistance Zones: 0.62860, 0.62300
Support Zones: 0.59510, 0.57780
The bulls started this week with a deliberate focus on recovery. Since November, they have demonstrated a consistent and long-term bullish trend. The initial surge in bullish momentum in November sparked optimism among investors. This, however, raised hopes for a year-end rally. The NZDUSD pair broke above the key resistance level of 0.58500, signaling a potential shift towards positive momentum.
Since then, the bulls have remained determined to pursue a solid bullish course. However, the momentum in the Kiwi market has reached a state of balance. The initial bullish momentum has faded, but the bears have not managed to take decisive control either. The bears are eagerly looking for an opportunity to push the price lower again, while the bulls are not giving up easily.
Market Expectation
As it stands, the Kiwi remains on a weak bullish trend, with the bears opposing any significant upward movement. However, there is still a plausible chance of a break above the 0.62300 significant level shortly. This would potentially pave the way for further bullish momentum and a renewed push by the buyers.
The Parabolic SAR (Stop and Reverse) indicator, despite reflecting a weak trend, still confirms the overall bullish sentiment in the market. This indicates that there is a lingering bullish bias, even though the momentum has weakened.
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