Global Market Sentiment Considerations
The NZDUSD has recently broken above a bearish trend line, indicating a potential shift in the underlying trend from bearish to bullish. This breakout suggests that the bulls are gaining strength and may continue to push the price higher in the coming days.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
However, it’s important to note that after a breakout, it’s common for the price to retest the broken trend line before continuing its upward momentum. A retest of the trend line would provide confirmation of the breakout and give traders an opportunity to enter long positions at a lower price point. In terms of technical indicators, the Relative Strength Index (RSI) is currently above the 50 level, which indicates bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator is showing a bullish crossover, which further supports the idea of a potential upward trend. Fundamentally, the NZDUSD pair may be influenced by several factors, such as the Reserve Bank of New Zealand’s interest rate decisions, global market sentiment, and geopolitical events. It’s important to keep an eye on these factors as they could impact the currency pair’s direction.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.