Both the Australian Dollar (AUD) and New Zealand Dollar (NZD) have shown resilience against the US Dollar (USD) recently, with their respective pairs, AUDUSD and NZDUSD, experiencing a notable recovery. This rebound follows attempts by sellers to push prices below significant technical support levels, which ultimately proved unsustainable.
For the NZDUSD pair, an initial push below a key trendline and a support zone between 0.5761 and 0.5777 was observed. However, the downward momentum could not be sustained, leading to a swift reversal. This failure to hold below critical levels prompted a rapid bounce, pushing the pair back towards the 0.5785 mark.
This price action highlights a crucial concept for retail forex and CFD traders: a technical break alone is often insufficient. Sustainable price movement requires not only a breach of a support or resistance level but also a confirmed hold beyond that level, indicating conviction from either buyers or sellers.
Upcoming Resistance Levels for NZDUSD
While the recovery is a positive sign for buyers, the path ahead presents several immediate challenges. The underside of the previously broken trendline now acts as close resistance, currently near 0.5791. Overcoming this level would open the door for further upside targets, including the 50% Fibonacci retracement level at 0.5806 and the falling 100-hour moving average, positioned around 0.5822.
Should the NZDUSD pair remain below the 0.5791 resistance, sellers might retain a short-term advantage, potentially leading to renewed pressure. Conversely, a sustained move above this level would lend more significance to the failed breakdown, suggesting a stronger shift in momentum. A retest and break below the 0.5777 and 0.5761-0.5764 area would signal renewed bearish intent.
📰 Based on reporting from: ForexLive →