Happy Friday, traders! Today, we’re bringing you a fresh technical analysis of the NZDUSD market. Let’s dive into the analysis and explore the current market conditions. Stay tuned to see what’s unfolding!
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!