NZD/USD: Bearish Breakdown or Just a Fakeout? Let’s Find Out!Looking at the NZD/USD charts across multiple time frames, we can spot some solid technical setups brewing. On the weekly chart, we see price action respecting both the 21 EMA and 200 EMA, with price bouncing off weekly resistance around 0.61110 and now sitting just above that daily support zone at 0.60116. Momentum is still bearish with price pushing down and failing to break above the 21 EMA, which indicates continued weakness.
The daily chart shows price consolidating beneath a key resistance level at 0.61110 and struggling to gain any upward momentum. The price recently attempted to push higher but got rejected at the 21 EMA, and now we are seeing a potential continuation to the downside with price hovering close to that 0.60116 support. This tells me the bears are still in control, and we might see further downside pressure this week.
On the 4-hour chart, the price is moving steadily below both the 21 EMA and 200 EMA, with a solid bearish trend in play. It’s been consolidating after a recent drop, which could set us up for a potential break lower. If we get a clean break below 0.60116, I’ll be looking to get in on a sell with a target toward the next weekly support at 0.58641. However, a retest of 0.61110 and failure to break higher could also be a great opportunity to sell from that resistance level.
Overall, I’m looking for a sell setup, either on a break below 0.60116 or a retest and rejection of 0.61110. Keep your eyes peeled for confirmations and remember, as always, manage your risk wisely! This is a great week to lock in some pips if you play it right. Let’s get to it, traders!
