NZDUSD rebound fizzles close to resistance. What now?

The NZDUSD reversed sharply greater after bottoming at zero.5483 on Wednesday, following a steep decline from final week’s excessive at zero.5852. The rebound almost erased all the drop, with value reaching zero.5839 — simply 13 pips shy of the latest peak.

That’s a strong roundtrip and a transparent sign of heightened volatility.

The transfer off the lows this week cleared a vital resistance zone, together with:

• The 100- and 200-bar MAs on the Four-hour chart

• The 100-day shifting common
  All of which clustered between zero.5698 and zero.5704, and have been convincingly damaged yesterday. That gave patrons the inexperienced mild for additional positive aspects.

Nevertheless, the rally stalled close to the 38.2% retracement of the decline from the September 2024 excessive, which sits at zero.58247. With at the moment’s excessive at zero.5839, value additionally fell wanting the zero.5852 excessive from final week, suggesting patrons blinked at a key resistance confluence.

What now?

The pair is now again under each the retracement and up to date swing highs, buying and selling close to zero.5799. Fast help is available in on the zero.5764–zero.57716 swing space. A break under that zone may shift short-term momentum again towards the shifting common cluster close to zero.5704 — a key space that may outline whether or not this rebound was a one-off or the beginning of one thing extra sustained.

This text was written by Emma Wang at www.ubaidahsan.com.



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