When analyzing the NZDUSD pair, it is evident that the pair has faced significant resistance around the 0.6220 level. Despite attempts to break through, the pair settled at 0.6170, indicating a struggle to move past this key resistance level. The Relative Strength Index (RSI) at 56 trending downwards suggests a drop in buying pressure. Additionally, the flat red bars on the Moving Average Convergence Divergence (MACD) indicate a consolidation pattern. This resistance and consolidation phase after a brief rise could potentially signal a shift in market sentiment.
On the 3-hour timeframe chart, the NZDUSD pair broke two previous highs, establishing a strong demand zone that has been tested before. The 200-period moving average support adds credibility to a bullish sentiment. The convergence of trendline support and Fibonacci retracement levels around 88% further supports the likelihood of a bullish reaction from this zone. Analysts are expecting a bullish move with a target of 0.61993 and an invalidation point at 0.60937.
Turning our attention to the 4-hour timeframe chart of NZDCHF, a bearish sentiment is forecasted. The chart demonstrates a clear break of structure after sweeping previous liquidity highs. The expectation is for a retracement into a supply zone area aligned with the 88% Fibonacci retracement level to trigger the next bearish impulse. Analysts predict a target of 0.54846 with an invalidation point at 0.56183.
After a breakout on the 2-hour timeframe chart, the NZDJPY pair is currently trending downward, possibly in search of a demand zone to attract new buyers. The highlighted demand zone aligns with the 88% Fibonacci retracement level and trendline support, strengthening the case for a bullish sentiment. Analysts foresee a bullish direction with a target of 96.879 and an invalidation point at 95.483.
Trading CFDs carries inherent risks, necessitating proper risk management strategies for success. When evaluating trading opportunities in the forex market, conducting thorough due diligence and managing risk effectively are crucial steps to avoid costly mistakes. By analyzing support and resistance levels, identifying market trends, and utilizing technical indicators, traders can make informed decisions to capitalize on potential trading opportunities.