Between September 9-10, the NZD/USD broke above the downtrend trendline as well as 200 Exponential Moving Average on the hourly chart.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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NZD/USD symbol on the MT4 platform
Key support levels: 0.6638, 0.6600
Key resistance levels: 0.6730, 0.6800
Between September 9-10, the NZD/USD broke above the downtrend trendline as well as 200 Exponential Moving Average on the hourly chart. The price has reached 0.6707 high but then corrected down to 0.6638. This correctional move could have provided a low-risk/high-reward opportunity to buyers, based on the previous price action.
Previously price broke above the descending channel and back on September 9th, this breakout point acted as the support, which was rejected. Besides, Fibonacci was applied to the corrective wave down after the channel breakout. And we can see that 227.2% Fibs at 0.6613 was rejected cleanly, also on September 9. This implies that buyers are still in control and as long as price remains above the 0.6600 psychological level, uptrend continuation is imminent.
Based on the Fibs applied to the corrective wave down after the breakout of 200 SMA/EMA, and the descending channel, we can locate potential key resistance for NZD/USD expected uptrend. This is 0.6798 level, which is extremely close to the 0.6800 key psychological resistance. The upside target is confirmed by 827.2% and 1261.8% Fibs, both of which are located exactly at the same spot, the 0.6798 level.