Key zones on NZDUSD
Resistance Zones: 0.745, 0.730
Support Zones: 0.710, 0.695
Market Analysis of NZDUSD
NZDUSD has experienced multiple breakouts on the daily chart. A symmetrical triangle pattern was formed from the 1st of March to the 19th of March. A breakout and retest was experienced before the price plunged to form resistance at 0.695. An ascending triangle was also formed immediately on the resistance level seen with a breakout higher on the 13th of April 2021. Currently, a descending triangle has also been formed from the 19th of April.
Market expectation of NZDUSD
The descending triangle formed on the daily chart is expected to see a breakout higher. This is supported by the cross in the Simple Moving Averages (SMA). The 9 Simple Moving Average (blue) which reacts faster is seen to cross the 21 Simple Moving Average (red) towards the upside.
On the four-hour chart, the descending triangle is well revealed. Price is currently seen reacting at the sloping border of the descending triangle with a bearish candle currently seen at the time of writing. The market might still fill up the space in the bearish triangle by reaching for the base of the triangle before finally breaking out higher.
The SMAs are supporting price move higher. Both SMAs rest under the recent candles on the four-hour chart. The 9 Simple Moving Average (blue) has crossed the 21 Simple Moving Average (red) upwards signifying a price rise.
Price would likely reach for the next resistance zone at 0.730 upon a breakout of the descending triangle.
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