FOREX Chart Of The Day: NZDUSD At Major Level
NZDUSD is at the major level or support already?
Recent high volatility news saw the risk currencies lose value very quickly through the Asia and European session
causing the price of NZDUSD to break below the key level outlined in the Forex Market Outlook.
Now price is back to it, what do we do next?
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will take a look at NZD/USD as the price has started to fall already.
In the Forex Market Outlook yesterday, we spoke about the two levels of interest. We talked about the 72-23 as the two areas of resistance and the 0.7086 area as a support level.
Now, what happened was that we’d had some news, and the market has pushed through that point, then we saw quite a lot of US Dollar buying through the Asia and European Session. When the US Session came in, we saw that the US Dollar weakness came back into the market. We’ve seen Kiwi push to the upside, but what’s happening right now in the market is it is hovering around the area where we pointed out as a significant area of support yesterday. What we were looking for was for the market to trend towards this point, hit this point, and then move towards the key resistance level where we were looking for shorts. But now the price has broken below this area. This area now could be a perfect watch for either outcome.
So, because the weekly lows have already been taken out, we could see that momentum continue to the downside. It’s come a little bit earlier than I wanted. I wanted to see that 0.7223 tested, which could still happen, but now we’re trading below that price. We’ll have to see how the price reacts to this area.
What I’m going to do in this 15-minute time frame is to look for any signs of bullishness or bearishness. What I mean by that is: does the market change cycle in this area? Do we get a consolidation above the area? Or do we break out? In that case, should I be looking for longs to the upside, or do we move to the downside? Do we form a double top pattern? Or do we break out and move lower? These key institutional levels look at how the price reacts because sometimes we can get the price breaking below before heading back to the upside.
I want to see how the market reacts at this point. Are the sellers going to step in and push the price further down? Or are the buyers going to try and hold their positions? I’m looking at this more from the buyers’ point of view. The fact that the price has been trading above this level. Typically, we would see the institutions defend that level. At the moment, that’s not happening. If the market finds some resistance here, then I would expect the price to move slightly lower.
Keep an eye on NZD/USD since we’re at a major key level. I’ll speak to you soon.
If you’re new to trading, it can be quite overwhelming. But you can always try out trading the NZD/USD currency pair by opening a demo account through Blueberry Markets. When you’re ready to trade with a live account, our customer support team will be there to assist you.