NZDUSD Market Technical Analysis on September 13, 2024, by Guriforex:
On the 4-hour chart (H4), NZDUSD has formed a descending channel pattern, signaling a broader downtrend. The price is currently testing the upper trendline, which coincides with the upper Bollinger Band, suggesting a critical moment for the pair. The Commodity Channel Index (CCI) is showing signs of a possible correction, adding caution for traders eyeing a breakout.
📉 Key Technical Insights
- Descending Channel: The pair has been closely following the boundaries of the descending channel. It is currently testing the upper trendline, and the results of this test will determine whether a reversal is likely or if a continuation of the downtrend is possible. The next move depends on whether buyers are able to break through the resistance.
- Bollinger Bands: The price is currently testing the upper Bollinger Band, often seen as a resistance level. This resistance is stronger when paired with the channel boundary. A rejection here could lead to a pullback. However, a breakout might signal further upside potential. Traders should watch for confirmation of the next move.
- CCI Indicator: The CCI is indicating an overbought condition, hinting that a possible correction could be approaching. This signal often precedes a price pullback. Traders should watch for a reversal in momentum soon. A correction could bring the price back to key support levels. Caution is advised as the market may turn.
🔍 Key Levels to Watch
- Bullish Scenario: If the bulls manage to break above the trendline and surpass the 0.6190 resistance, the next target would be 0.6240, indicating a potential breakout from the descending channel.
- Bearish Scenario: However, if the price fails to break through and rebounds from the trendline, it could fall back to 0.6125, continuing the bearish trend within the channel.
💬 What’s Your Take on This Analysis?
- Do you see the potential for a breakout above the 0.6190 resistance, or are you expecting a rebound and a return to 0.6125?
Let us know your thoughts in the comments below!