Market Analysis: NZDUSD Bullish Momentum Faces Short-Term Pullback Amidst Key Resistance
NZDUSD price has recently embarked on a pronounced bullish climb, moving away from the pivotal 0.58600 support level. This currency pair has shown a pattern of alternating bullish and bearish phases, effectively keeping the market within a range-bound framework. The failure of NZDUSD to breach the 0.62390 resistance in early June 2024 triggered a descent to a support level near 0.56800. However, the market’s resilience at this point prevented a deeper bearish extension, nullifying the chances of a sustained downward movement.
NZDUSD Significant Zones
Resistance Levels: 0.62390, 0.63800
Support Levels: 0.60450, 0.58600
As the NZDUSD market commenced its upward trajectory toward the 0.62390 threshold, it targeted liquidity situated beneath this level. The absorption of this liquidity will likely provide the pair with sufficient momentum to overcome the 0.62390 barrier, setting its sights on the 0.63800 level. The alignment of the price above the Moving Average confirms the prevailing bullish sentiment, with the 4-hour chart reinforcing this outlook through continued bullish price action.
On the other hand, the Relative Strength Index (RSI) on both daily and 4-hour timeframes indicates that the pair is entering overbought territory. This signals a potential imminent pullback, although it is likely to be temporary given the robust bullish momentum driving the market.
Market Expectation
Expectations lean towards NZDUSD surpassing the 0.62390 resistance, with the ultimate goal of reaching the 0.63800 mark. Investors and traders should be mindful of the potential for short-term retracements, which could offer strategic entry points within the broader bullish context. Forex signals may provide valuable insights during these pullback phases, helping to identify optimal moments for entering the market.
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