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NZD/USD: The Bear may take over

EagleFX

NZD/USD made a good bullish move in the daily chart. The price had a rejection at a level and produced a bearish candle followed by an inside bar. Yesterday’s candle came out as a bearish engulfing candle, which may attract the sellers to go short in the pair and drive the price towards the South. The H1 chart looks good for the bear. The H4 chart is bearish biased, but the sellers may wait for the price to consolidate and offer them short entries. Let us now have a look at those three charts.



Chart 1 NZD/USD Daily Chart


The chart shows that the price had a rejection of around 0.65500 and produced a bearish candle. The next candle came out as a bullish corrective candle followed by yesterday’s bearish engulfing candle. This suggests that the Bear may take control of the pair and drive the price towards the South. The price may find its next support around 0.61500. On the other hand, if the price consolidates here and produces a bullish reversal candle, a breakout above 0.65500 may attract the buyers to dominate in the pair again.

Chart 2 NZD/USD H4 Chart


The H4 chart shows that the price made a strong bearish move upon producing a double top. The price breached the neckline and did not look back. As of writing, it seems that the level of 0.63965 may work as a level of support and make the price have a bullish correction/consolidation. The H4 sellers are to wait for the price to consolidate and a breakout at 0.63965 to go short in the pair and drive the price towards the South. The price may find its resistance at 0.64650 and produce a bearish reversal candle before making its next bearish move. In case of that, the price may find its next support around 0.62800.

Chart 3 NZD/USD H1 Chart


The H1 chart seems to be getting ready to make a bearish move soon. The price after making a strong bearish move had a bounce at 0.63965 and produced a bullish candle. It then had a rejection at 0.64180 and produced a Pin Bar. The sellers may go short in the pair below 0.63965 and drive the price towards the South. The price may find its next support around 0.63200. In case of a bullish breakout, the price may find its next resistance around 0.64650.

The daily and the H1 chart look good for the sellers. The H4 chart suggests that the sellers are to wait. Considering these three charts, it seems that the pair may produce another bearish candle today.

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