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NZDUSD: Does the pullback attract the buyers to push for a breakout?

EagleFX

NZD/USD has been trapped within two horizontal levels on the daily chart. The pair, after having a bounce at the level of support, produced a bullish engulfing candle and made a bullish move. The price has had a bearish correction. Thus, the buyers may keep an eye on the pair to get a breakout at the level of resistance and push the price towards the North further. Today, the pair made a breakout at yesterday’s highest high. As of writing, it is trading above the breakout level. Thus, intraday traders may look for long opportunities in the pair for which the pair may end up producing a daily bullish candle.

Chart 1 NZD/USD Daily Chart


The chart shows that the price has been trapped within 0.59300 to 0.61600. At its last bounce, it produced a bullish engulfing candle and had a rejection at 0.61600. Upon producing a bearish inside bar, the pair produced one more bearish candle. Yesterday’s candle came out as a doji candle. If today’s candle comes out as a bullish engulfing candle closing above 0.61600, the buyers may push the price towards the North with good buying pressure. The price may find its next resistance around 0.63500.

Chart 2 NZD/USD H4 Chart


The chart shows that the price after being bullish had a rejection at 0.61600 and made a long bearish correction. The level of 0.60850 holds the price as a level of support. The price has been heading towards the North with good bullish momentum. It may consolidate around 0.61600. If it makes a bullish breakout at the level, the buyers may go long in the pair and create more buying pressure. The price may find its next resistance around 0.62250. On the other hand, if the level of resistance produces a bearish reversal candle, the sellers may take over and drive the price towards the level of 0.60850.

Chart 3 NZD/USD H1 Chart


The H1 chart shows that the price produced a double bottom and made a breakout at the neckline. The double top resistance is nearby. The price may make a bearish correction before making its next move. It may come back to the level of 0.61100 to get bullish again. In case of a bearish breakout at 0.61100, the pair may head towards the South and find its next support around 0.60850.

The daily and the H4 chart looks good for the bull. The H1 chart suggests that the buyers may have to wait either for a breakout at the highest high or for a pullback followed by a bullish reversal candle at the flipped support. Considering all three charts, it seems that the pair may end up producing a daily bullish candle.

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