NZD/USD: Pair has bottomed out, as rounding bottom price pattern has formed.

November 02, 2018

 

Earlier the pair NZD/USD was making successively lower lows and lower highs on the daily technical chart and pair has made a low of 0.6423 level in the last month and after arriving at that level bears lost their grip from the pair and unable to take pair further downside, at the same time bulls made a fantastic counter attack as we can see two consecutive rounding bottom pattern on the hourly chart and a potential rounding bottom pattern in the daily chart.

 

 

The NZD/USD pair has charted a bull flag on the 4 hourly chart, which is a continuation pattern, meaning a break above the flag resistance, currently seen at 0.6700, would revive the rally and would allow a rally to 0.6800.The prospects of bull flag breakout would weaken if the pair finds acceptance below the 100-hour exponential moving average 0.6500.

 

Well the current stance shows a bullish momentum and pair has crossed the moving average, the 0.6700 can be a stumble block for bulls and a valid breakout of this level will open the way towards the 0.6800. The way bulls are reacting it seems like bulls have started the journey and they are not going to stop as early, we are hoping that bulls will test the 0.6800 level atleast.

 

A big bullish marabuzo candlesticks above the moving average line are supporting the bulls on the daily chart. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 0.6500 level remains intact. The RSI is also supporting the bulls from positive territory and a bullish crossover has been occurred on the MACD indicator which is also generting bullish signal and strengthening the bulls.

 

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