NZDUSD → Another retest of support could yield a breakout

22 janv. 2024

NZDUSD is testing strong support at 0.6086, but the market is not forming a logical bounce or reversal. The price continues to test the support, which reminds us of the "Flag" pattern, the essence of which is the continuation of the movement.



On the daily timeframe I marked the key level 0.61038. A false breakout is formed and there is no logical reaction relative to the level (no growth after a false breakout). Buying power is weakening on the back of the rising dollar. Strong bears are forming a pre-breakdown consolidation relative to the 0.6100 level. The dollar index is strengthening as regulators are further delaying a possible rate cut, which could technically strengthen the index, and that would negatively impact the forex.
The moving averages, reversal pattern, retest and pre-breakout consolidation of 0.6100 - 0.6086 suggests a possible breakout of support and a decline in price towards 0.61000.

Resistance levels: 0.6134, 0.6208
Support levels: 0.6100, 0.6084

I expect that on the background of pre-breakdown consolidation another support retest will be formed, which may break this line and the market will start to form a bearish impulse.

Regards R. Linda!

22 janv. 2024

Note

23 janv. 2024

Note

Realization of the scenario specified in the idea
The price consolidates, after the end of consolidation a support breakout is formed.