NZDUSD Could Drop to 0.68000 After Forging Into a Double Top Pattern

NZDUSD Price Analysis – November 22

NZDUSD could drop as low as 0.68000 after it takes the pattern of a slanting double top formation. Over the past three months, NZDUSD has had a pattern of movement which is undulating. This is chiefly because of fluctuating strength of sellers and buyers. However, it all could work in the sellers’ favor as the market could drop much lower after forming a double top pattern.

NZDUSD Key Zones

Resistance Zones: 0.71500, 0.72900
Support Zones: 0.69460, 0.68000

NZDUSD Long Term Trend: Bearish

In the year 2021, the highest price rose was up to 0.74580, but it dropped in an instant back below 0.72900, which it retested several times. The market eventually drops about 4% to 0.69460, where it consolidated for a further two months. Sellers from there pushed the market further downward to 0.68000. This led to retribution from the buyers, who immediately pumped the price to 0.71500.

NZDUSD didn’t last at 0.71500 as it plunged almost immediately down again. However, halfway through, buyers regained control, pushing the market above the 0.71500 level. Price could have risen further had it held a bit longer above 0.71500, but it drops through the MA period 20 (Moving Average) to 0.69880, where it completes a double top formation. With this pattern, the price is predicted to drop even lower.

NZDUSD Short Term Trend: Bearish

On the 4-hour chart, the MACD shows that the market is generally bearish as the line has remained below the zero level. Price is currently reacting to the 0.69880 price level as the market tapers through a triangle pattern. The MA period 20 remains as a resistance to the market currently.

NZDUSD is predicted to drop lower, breaking through 0.69460 before heading for 0.68000.

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