NZDUSD weekly Technical outlook. NZDUSD has again traded to an important level on the price chart.Have the bears lost it?
18 March, AtoZForex -The week ended saw NZDUSD bulls inflict damage on the bears. The bulls took charge upon price finding support at the low of 0.6889 two weekly sessions ago. The support has proven substantial following the bear’s failure to have price trade below it.
The weekly technical outlook relays a better story. As can be seen on the price chart, the 0.6889 low which now holds as a support is a key area of interest. The area coincides nicely with a long term trend line drawn off the August 2015 low of 0.6167, linking the low of 0.6347, and to its current weekly low.
Although NZDUSD price is still held within the bears camp, the week ended close makes a strong case for the bulls take over.
How well the bulls perform in the times ahead remains to be seen. On the weekly frame, the next key area of interest stands around the 0.7090 resistance. Obviously, this region is the line in the sand between bulls and bears. If the 0.6889 support remains intact, a price close above the 0.7090 resistance would be needed to confirm the bulls dominance. A successful close above said resistance should inspire strong rallies towards 0.7300 region.
Price actions on the big picture shows that recent dips have been corrective and that the overall technical posture is bullish. The unsustained bear run some twenty monthly sessions ago which resulted in price recoiling back into its range shows the bulls overall presence.
NZDUSD weekly Technical outlook. Have the bears lost grounds?
NZDUSD Daily Technical outlook
For purposes of trade entry, price action on the daily frame is assertive. Price has formed a combo of price action setup at the very bottom of its daily range. The engulfing pattern among others is prominent and provides quite enough technical reason for investors to go long. More so, oversold conditions and the formation of positive divergence are further signs of strength for NZDUSD. However, a breach of the daily price action would indicate a failed attempt by the bulls to live up to their game. But as long as price stays above the 0.6889 support, the bulls will continue to have brighter chances.
What is your view on NZDUSD weekly Technical outlook. Have the bears lost grounds? Please share your view in the comments section below.