NZDUSD Analysis – Following a Bearish Bout, the Price Is Recovering From 0.65330
NZDUSD is rising again after recovering from a bearish bout that plunged the market to 0.65330. The market can be seen ascending along a trend line. The trend line seems to create a triangle formation with the 0.67140 price level. This design helps the price break the level barrier without much stress. NZDUSD also went further to breach the 0.68000 price line and is still rising.
NZDUSD Key Level
Resistance Levels: 0.69460, 0.70490, 0.71500
Support Levels: 0.65330, 0.67140, 0.68000
The currency pair was dealt a bearish bout when consecutive rejections around the 0.71500 significant level led to a double top pattern, a bearish reversal formation. NZDUSD went into a free fall as soon as it broke its slanting neckline. At 0.68000, there was a temporal respite for the market, but the downward pull ensured price continued its bearish round to 0.65330.
At 0.65330, buyers regained stability and immediately began a recovery process by which they drove the price upward through a triangle pattern. NZDUSD keeps being energized as it keeps rising, breaking 0.68000. The upward MA cross (Moving Average) is still valid as bears currently have the upper hand in the market. The MACD (Moving Average Convergence Divergence) also has its lines rising above zero.
Market Expectations
The 4-hour chart shows an initial rejection at the significant level of 0.69460. This has led to a retracement to 0.68000. The buyers are now regrouping at this level for a retest of the rejection level. Although they are currently drooping, the MACD lines remain high and above the zero level. The MA Cross has not yet made a downward cross. The reaction of the price above 0.68000 will determine its direction. The price is expected to rise again towards 0.69460.
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