NZDUSD Retests the Bearish Trendline Following the Breakout

Market Analysis – December 9

NZDUSD retests the bearish trendline following a bullish breakout. The market trend turned bearish after the appearance of a double top above 0.680. The retest of the double top’s neckline fostered a surge of sellers in the market. The retest fostered the price to decline rapidly.

NZDUSD Key Levels:

Supply Levels: 0.650, 0.660, 0.680
Demans Levels: 0.620, 0.600, 0.560

NZDUSD Long-term Trend: Bullish

The downward motion paused at 0.620 for a retracement. From May 13 to the conclusion of the month, there was a counter-trend move. At 0.660, a new double top developed, resuming the downward trend. The anchors for the negative trendline were the double top and the lower high next to it. The price plummeted to a demand level of 0.560.

Throughout the entire month of September, the daily candles’ closing was below the midline of the Bollinger Bands. Bulls took advantage of the support level at 0.560 to flood the market with buy orders. The daily candles rose above the Bollinger Bands’ midline to signify bullishness. The Parabolic SAR (Stop and Reverse) points formed beneath the daily candles to further confirm the new uptrend. The pressure of the buy orders caused a significant rise in the price. The market ascended to break the bearish trend line.

NZDUSD Short-term Trend: Bullish

The uptrend paused at the 0.650 supply zone. The bearish trendline formed a confluence point with the demand level at 0.620. The market retraced to the support level of 0.620 to retest the former resistance trendline for a bullish takeoff. The market has experienced another breakout from a falling wedge. 0.650 appears to be the next target of the bulls.

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