Cabana Capitals Blog Market Insights NZD/USD: A potential rounding bottom pattern has started to form.

NZD/USD: A potential rounding bottom pattern has started to form.

NZD/USD: A potential rounding bottom pattern has started to form. post thumbnail image

Overview:- By looking at the daily technical chart we can see that an half curve has been formed where a very balanced demand and supply is going on where bulls are now controlling the game with full momentum. Earlier pair was falling down and it fall sharply from 0.6787 level to 0.6210 level and after marking the low , bulls took the charge.

Well the current picture dipicts that bulls are dominating the bears and now bears lost the grip from the market. It’s just a starting of the journey we will get further bullish signal above 0.6450 level, we need a daily closing above the mentioned level then only we may get surety for the arrival of 0.6600 level and 0.6750 level in near term.

Technical Analysis: – From technical prospective we can see that a downtrend line has been breached out where bulls are surviving above the breached line. The bulls have  took the charge from starting of the October month itself where bulls made a fabulous counter attack from 4 year’s low and took the pair from 0.6200 to 0.6415 level. Well it is just a starting further picture is still due and we are expecting that a fantastic rally is awaited.

The short term trend has been changed from downside to upside and odds are in favor of bulls and we will keep our view as bullish on the pair as long as 0.6300 level remains intact. The pressure is coming from bulls to take it around 0.6600 level.

RSI is also turned up above 50 level and MACD line recently crossed up the zero line on the daily chart Overall pair is trading and sustaining above the moving average lines which is generating bullish signal for the time being.

What Next:-  Overall bulls are playing at their front foot and leading in the game and the way bulls are reacting it seems like they are not ready to stop in early stage and they are approaching the further upside .The 0.6600 level is immediate key resistance level followed by 0.6750 level where as 0.6250 level can be considered as key support level followed by 0.6150 level. Odds are in favor of bulls and intraday to weekly bias remains bullish on the pair.

In our previous report also we mentioned to buy the pair at 0.6270 level for the target of 0.6400 level and our target has been achieved so we hope that our readers must have made profit from this move.

Trade idea:-  Based on chart and studies above we would suggest our traders and investors that go for buy  around 0.6380-70 level for the target of 0.6550 and 0.6600 with stop loss of 0.6250 level.

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