NZDUSD Analysis – Price Keeps Strengthening Towards the 0.71500 Key Level
NZDUSD keeps strengthening and has set its sights toward the 0.71500 key level. The price has not relented on its bullish agenda, which it commenced from the 0.65330 support level on the last day of January. The market keeps a steep upward drive that has helped it violate several key levels. NZDUSD has also breached the 0.69460 strong price line and is strengthening to climb further from it.
NZDUSD Significant Zones
Resistance Levels: 0.70490, 0.71500
Support Levels: 0.69460, 0.65330
The New Zealand dollar keeps building its profile at the expense of the US dollar. This comes only after the NZD has passed through a depressing state from late October last year to late January this year. During the period of bearishness, the price dropped more than 9% from 0.71500 to 0.65330. However, market investors have contributed to the immediate strengthening of the market from there.
Hence, NZD has embarked on a rigid and steady price climb, characterized by a retest and break pattern of upward movement. Indications are that price will continue in this might till it attains to 0.71500. The EFI (Elders Force Index) power line demonstrates the movement pattern of the market with consistent higher highs and lows till the line climbs entirely above the zero level.
Market Expectations
On the 4-hour chart, the price is seen gliding along upwards on its trend line. The 0.69460 significant level (which once acted as the neckline of a double top reversal pattern used by sellers to plunge the price) has now been subdued, and the market has taken a stand. From here, NZD keeps strengthening itself to reach the 0.71500 resistance level.
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