Last week, the NZDUSD experienced a notable surge, successfully surpassing several key technical benchmarks. This rally included moving above various moving average targets, breaching a crucial swing area between 0.61487 and 0.61594, and even crossing the 50% retracement level of the downward move from the December 2023 high to the February 2024 low at 0.62028. However, the upward momentum met resistance as the price approached the February swing high near 0.6217. On Friday, the pair nearly touched this level, reaching 0.6215, before reversing and shedding most of the day’s gains to close near unchanged.
In today’s trading session, the market has shown volatility within a narrow range. Despite this, the current 4-hour bar marked a slight extension of the downward trend, but only to the upper boundary of the swing area between 0.61487 and 0.61594. Following this dip, the price has rebounded, currently trading at 0.6169. The question now turns to what lies ahead for the NZDUSD pair.
In the accompanying video, I delve into the specifics of what buyers need to do to reinforce the bullish sentiment and potentially drive the price back towards the recent high and the midpoint at 0.62028. On the flip side, I also discuss the conditions that would signify the continuation of selling pressure, thereby enhancing the bearish outlook and keeping sellers in command. These pivotal questions and their implications for market direction are explored in detail in the video.