The NZDUSD currency pair has experienced a remarkable surge, soaring from its previous discount price observed during the last bullish swing, and it is now approaching the previous highs recorded on the daily chart.
Taking a closer look at the daily candles, it becomes evident that they have encountered the upper boundary of a parallel channel, which is currently acting as a formidable resistance level to the ongoing ascent. This resistance presents a significant challenge for the currency pair, as it attempts to surpass the previous highs and continue its upward trajectory.
Analyzing the technical indicators, the Relative Strength Index (RSI) reveals a bullish market sentiment, indicating that the buying pressure remains strong. However, caution is warranted as the Williams %R (Percent Range) indicator has already signaled that the price is overbought.
NZDUSD Short-term Trend: Bullish
Zooming in on the 4-hour chart, the market structure continues to exhibit a bullish bias, with no visible signs of a reversal. Traders are eagerly watching for any shifts in momentum or changes in the market structure that could confirm a potential reversal.
The critical factor to monitor is the break of the resistance trendline, as a decisive breach would serve as confirmation of a new bullish trend. On the other hand, if the price fails to breach the resistance and reverses, it could indicate a continuation of the bearish trend.
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NZDUSD Short-term Trend: Bullish
