Technical Analysis: NZD/USD – H1 Timeframe
The NZD/USD pair experienced a strong downward movement during trading on April 10, after the price failed to maintain nearby resistance levels, leading to a break of key support levels and pushing the price towards its weekly lows. At the start of today’s trading, we note attempts at a technical rebound amid conflicting signals from indicators.
Technical Indicator Analysis
Moving Averages
The price is clearly moving above all moving averages (20, 50, and 100), clearly confirming the uptrend
The short-term moving averages (5 and 13) are in a positive crossover and maintain a strong upward bias.
MACD
In the positive zone, and the bullish bars are still increasing, supporting strong upward momentum
Stochastic
The indicator is in the overbought zone (above 80) at 80.5, which may indicate an imminent technical correction or limited profit-taking.
Possible Scenarios
Bullish Scenario
Continued trading above 0.5790 supports the possibility of an extended rally towards 0.5829 and then 0.5862.
A clear break of 0.5829 may pave the way for a test of the most important resistance at 0.5862. A break of these levels may change the short-term outlook from bearish to neutral.
Bearish Scenario
if the current resistance fails, the price may return to testing 0.5762 as initial support, followed by 0.5740 as a pivotal support level.
A break of 0.5740 may return the pair to the previous range of volatility, weakening the short-term bullish outlook
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | NZD/USD |
| 1.07698 | 1.07350 | Entry point |
| First resistance: 1.07982 | First support: 1.07117 | Target Point 1 (TP1) |
| Second resistance 1.31786 | Second support 1.06917 | Target Point 2 (TP2) |
| 1.07350 | 1.07698 | Stop Loss (SL) |
The NZD/USD pair continues its strong upward movement, driven by clear positive momentum from technical indicators. However, the price remains within critical resistance areas with overbought indicators, which warrant caution.
It is best to monitor any slight pullback as a new buying opportunity as long as the 0.5740 level remains unbroken.
NZD/USD: Consistency above 0.5790 supports the bullish scenario, and a break above 0.5829 paves the way for 0.5862. A break of the 0.5740 support level could reverse the short-term trend to a downside.
The optimal strategy: Wait for a correction toward strong support levels to enter new long positions, or enter after a confirmed break of resistance levels with a close stop-loss.
