NZDUSD established a bullish reversal with a shift in market structure, sweeping the highs of 0.5850. The price has struggled with reduced momentum to reach an opposing breaker block at 0.6110. This poses a threat to the bullish run.
NZDUSD formed a double top at 0.6000, reflecting a loss of bullish momentum after the initial reversal. The price pulled back for a retest, which provided support for the continuation. It then rose sluggishly to hit an opposing breaker block at 0.6110.
The market has now formed a double top at 0.6110, a direct result of testing an opposing breaker block acting as resistance to further upward movement. Additionally, the Stochastic indicator signals an overbought condition. The ascent to 0.6110 created fair value gaps, which may serve as retracement zones to regain momentum for a possible breakout.
NZDUSD Short-Term Trend: Bullish
At the key level of 0.6110, the price reversed with a head and shoulders pattern, and bearish structures have continued to form since. A shift in market structure could provide early insight into a continuation of the ascent toward the next key level of 0.6340.
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NZDUSD Short-Term Trend: Bullish
