Nzdusd Head Towards Support

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Nzdusd Head Towards Support

Nzd/Usd Head Towards 0.6100 - Uob Group

NZD/USD is currently trading near the 0.6139 handle, with the nearest resistance at the 0.6180 level. According to UOB analysts, the 0.6180 is out of reach for the NZD traders, at least for now.

As for whether the NZD/USD can turn bullish, UOB Group believes there's a slight chance that the pair might rise towards the 0.6200 resistance.

Recovery Intact On Daily Chart

If we look at the price action, the NZD/USD retested the 0.6130 level with the nearest resistance at 0.6150, which is staying out of reach.

So even if the NZD/USD shows bullish momentum, it will only touch the 0.6150, 0.6170, and then the 0.6180 resistance. Additionally, the NZD/USD must defend the 0.6115 handle if it wants any chance at a short-term bullish reversal.

For the next 1 to 3 weeks, UOB Group believes that the recent weakness seen in the NZD/USD pair has stabilized. As a result, there's a good chance that NZD will try to reach an exchange level of 0.6150 against the USD.

But if the NZD/USD breaks the 0.6070 support, it would be a sign that the recovery drive in the pair is over. On the way up, the most relevant level is 0.6180, followed by the static level at 0.6200. On the way down, the most relevant and strong support is near the 0.6070 - 0.6100 level.

The NZD/USD daily chart shows that a recovery phase is in progress after bouncing from 0.60500. Based on that, the next resistance level will be 0.6200, while the next support levels are 0.6100 and 0.6050.

The NZD/USD D1 chart also shows that an inverse head and shoulder pattern is also forming. However, the validity of that pattern is still under question as it has formed in a choppy market rather than at the end of a downtrend. Despite this, some interesting price action will be seen at the neckline located near 0.6200.

Beyond the 0.6200 resistance, the next resistance is present at 0.62500 and then 0.63500 on the D1 chart.

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