NZDUSD Experiences a Successful Breakout of Its Ascending Channel

NZDUSD Analysis – April 18

NZDUSD experiences a successful breakout of the ascending channel on the 8th of April. The market was in a phase of consolidation from December to January. The Moving Averages crossed sideways until the 14th of January. A major displacement caused the market to dip to 0.6540. The sellers purged the market for seven consecutive days until the demand zone at 0.6540 was struck.

NZDUSD Major Zones:

Demand Zones: 0.6540, 0.6600, 0.6660
Supply Zones: 0.6800, 0.6860, 0.6980

NZDUSD Long Term Trend: Bearish

The market changed direction with a swing low that formed completely on February 1st. The market retraced back to the demand zone at 0.6600. This initiated bullish action to clear the highs formed on the 3rd of February. On the 16th of February, the Moving Average period twenty-one crossed the Moving Average period nine to the upper side. The Moving Average cross signified the change in market direction. The market created higher lows and highs, which formed an ascending channel in the market.

The high of the previous consolidation was passed on the 7th of March with a shadow. The market retraced to the lower border of the ascending channel. The lower trend line acted as a support to continue bullish action in the market. The bulls met resistance at 0.6980. The market struck the upper border of the ascending channel and continued to range sideways. The major low formed on the 29th of March was violated on the 8th of April. The bearish candle dipped past the ascending channel.

NZDUSD Short Term Trend: Bearish

The 12th of April was bullish to retest the lower border of the ascending channel. The retest brought more sellers into the market. This led to a successful breakout of the ascending channel. The market cleared the low formed on the 15th of March. The bears are expected to drive the market to a 0.6660 demand zone. The Moving Averages have also switched sides to indicate bearishness.

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