Bottom line: NZDUSD bullish structure is expected to remain intact until prices stay above 0.5470 levels. Bulls are poised to push prices through 0.6760 mark which is immediate price resistance.
Technical Analysis:
NZDUSD bulls have managed to produce an engulfing bullish candlestick pattern on the weekly chart, after printing lows at 0.5470 levels on March 19, 2020. This could be indicating a potential trend reversal lasting for several weeks as traders might be inclined to build long positions.
Immediate price resistance is seen at 0.6760 levels, the December 31, 2019 high, and bulls would be targeting to push NZDUSD higher. This would also be a confirmation that bulls are going to remain in control going forward.
Most traders might be preparing to initiate fresh long positions around current levels (0.5950) with a protective stop below 0.5470 respectively. As discussed above, initial price targets would remain above 0.6760 mark to register themselves.
Unlike the Aussie Dollar, the Kiwi has managed well to hold above its March 2009 support at 0.4896 levels. This could be an indication that the entire drop between 0.8842 and 0.5470 could be corrective and has managed to retrace towards fibonacci 78.6% levels. It is quite possible that bulls may resume a long term trend pushing NZDUSD higher above 0.8842 levels in the next several months.
Alternately, we can at least expect a 3 wave corrective rally from 0.5470 lows, towards the fibonacci 0.618 retracement of the above drop. In this case, NZDUSD might reach around 0.7550 levels before hitting resistance and turning lower again. In either case, a high probable trade direction might be on the north side against 0.5470 levels.
Furthermore, the trend line support from November 2000 has been marginally breached and prices have entered the sell zone for now. A rally towards 0.6760 could probably test the backside of the trend line which is resistance now.
Overall, NZDUSD bulls are expected to remain poised to push prices towards 0.6760 levels at least. Would be interesting to see how price action shapes around 0.6760.
Prepared by
Harsh Japee, Technical Analyst.
NZDUSD Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
