NZDUSD progresses Within Its Bearish Parallel Channel

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NZDUSD Market Analysis – March 4

NZDUSD progresses within a bearish parallel channel after the previous year’s high was reached on February 25, 2021. The previous year was bearish for the NZDUSD. The market reached its peak last year at 0.7450 at the beginning of the year. The bears gained control and sank the price to a $0.6950 demand zone with consistent lower highs.


NZDUSD Major Market Zones

Resistance Zones: 0.7450 0.7200
Support Zones: 0.6950 0.6550

NZDUSD Progress Within Its Bearish Parallel ChannelNZDUSD Long term trend: Bullish

The swing from the 0.7450 resistance level to the 0.6550 support level anchors the trend lines that form the bearish parallel channel on the higher timeframe (daily chart). The second touch of both sides of the channel was a bullish swing from the low of the daily candle on the 20th of August. The bullish swing met resistance at 0.7200. At the resistance level formed, there was a change in the market direction.

The third touch within the bearish parallel channel at the lower end occurred on January 25, 2022. The channel did not hold the price perfectly, as there was a false breakout of the parallel channel. A new demand zone was formed at $0.6550. The market was oversold, as signified by the Stochastic. The Moving Averages (period nine (blue) and period twenty-one (red)) eventually switched sides to support a new bullish run towards 0.6950.

NZDUSD Progress Within Its Bearish Parallel Channel

NZDUSD Short term trend: Bullish

The market has struck the long-awaited upper border of the channel. This area falls around the 0.6950 resistance zone. The Stochastic is also showing the market is overbought and ready for a selloff. The Moving Average has yet to confirm the anticipated bearish move. A clear bearish shift is still missing. The market will likely respect the bearish parallel channel by sinking prices towards the 0.6550 demand zone.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.