NZDUSD Bounces Higher After a Strong Reaction Against Sellers

NZDUSD Price Analysis – October 17

NZDUSD bounces higher after reacting strongly against the sellers. The bears tried to pin the market down to the weekly support. This initially made the price drill lower to 0.68800, but it recovered immediately back to the 0.69150 support. At this level, the market reacted strongly against the bulls, by displaying a series of candlesticks showing indecision and market reversal. Eventually, NZDUSD bounces higher from the weekly support.

NZDUSD Key Levels

Resistance Levels: 0.72260, 0.71300, 0.70900
Support Levels: 0.69150, 0.68800, 0.68080

NZDUSD Long Term Trend: Bearish

NZDUSD continues in a consolidation movement between significant levels as the price bounces up from a support level. This ranging movement began on June 16th, when price dropped from a higher consolidation zone into this zone. However, a strong reaction from the sellers to forcefully breakout was tempered at the 0.68080 significant level, but this also sparked a reaction of equal measure from buyers, in which it had to take 0.71300 to keep the price at bay.

The price then fell again before rebounding from the parallel channel’s middle line. The market retests the 0.70900 resistance and then drops lower with much volatility, to around 0.68800. NZDUSD rallies at this point, but sellers try to pin it down. A strong reaction at 0.69150 helped the price bounce higher. The Average True Range indicator shows there is usually more volatility when the market falls. But buyers have done well to fight off bearish pressure. After hitting the 0.70900 resistance, the price could be on its way down again.

NZDUSD Short Term Trend: Bearish

The market has started reacting to the resistance level at 0.70900 with consecutive short reversal candlesticks. At this point, market volatility has dropped very low on the ATR chart. This is even as the RSI (Relative Strength Index) has climbed high into the overbought region, which is a sign of imminent reversal.

The market is likely to continue its ranging pattern by dropping off to the support level at 0.69150.

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