NZD/USD Top-Down Market Analysis
Detailed NZD/USD top-down market analysis for October 1, 2024. Insights include price action, key resistance, and support levels from the daily, 4-hour, and 1-hour charts. Potential trade setups and important market zones for traders.
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Daily Timeframe:
In the daily chart, NZD/USD is trading within a key resistance zone around 0.6340 to 0.6380. This zone has been tested multiple times, and the price is showing signs of potential rejection, with bearish pressure building up. Traders should watch for a decisive breakout above the resistance to confirm bullish momentum, while a rejection could lead to a downward move towards the support levels around 0.6295 and 0.6252.
Key Levels:
- Resistance: 0.6380
- Support: 0.6295, 0.6252
4-Hour Timeframe:
In the 4-hour chart, we can see the price has broken below a rising channel, indicating a potential shift in momentum. The pair is now retesting a supply zone between 0.6340 and 0.6360. This level could act as a resistance, and if the price fails to break above this zone, we may see a continued downward move towards the next demand zone around 0.6290.
Additionally, the footprint marked around 0.6320 shows an important reaction level. If this area holds, it could signal a continuation of the bearish trend.
Key Observations:
- Bearish Channel Breakout
- Retest of Supply Zone (0.6340 – 0.6360)
- Potential targets: 0.6290, and possibly 0.6257
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1-Hour Timeframe:
The 1-hour chart shows the pair breaking below a bear flag pattern, a continuation signal of the previous bearish momentum. The price is hovering near the 0.6330 level, and there are two potential scenarios from here:
- Bullish Scenario: If the price pushes back above 0.6340, we may see a short-term move towards 0.6360 or higher.
- Bearish Scenario: If the price breaks below 0.6330 and holds, expect the market to test 0.6300 and then 0.6250.
Traders should keep an eye on these levels, as they represent critical points for potential trade setups in both directions.
Conclusion:NZD/USD is at a key inflection point. On the higher timeframes, the pair is testing important resistance levels, while on the lower timeframes, the breakdown of the rising channel suggests further downside potential. Traders should be cautious and wait for clear confirmations—either a break above resistance for long positions or a continued rejection for short trades. Keep an eye on the 0.6340 and 0.6290 levels for the next possible move. |
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