NZD/USD Price Analysis: Bears lurking below 0.6200, eyes on trendline support
|- NZD/USD has dropped into a key support area.
- 0.6150 would be expected to hold and result in a meanwhile correction.
As per the prior analysis, NZD/USD Price Analysis: Bulls seek out 0.6300 while bears eye signs of distribution, the bears indeed moved in and distribution has been in play.
The tweezer top was highlighted as a dominant feature in the prior chart, a bearish candle stick combination pattern that showed sellers were in the market.
NZD/USD prior analysis
The price was now testing the next trendline support and a break there opened the risk of a move to the downside to test below 0.6250 and with eyes that were on 0.6236 as the prior lows and trendline before 0.6200:
With that being said, it was explained that it would have been unusual for the market to simply melt without a revisit to the peak formation as distribution takes a while to play out, usually as per the following topping scenario shown on the 15-minute chart:
NZD/USD M15 chart
NZD/USD update
As can be seen, the price indeed returned the upside prior to the full breakdown into 0.6200 and then to the 0.6150s. Going forward a tougher challenge awaits the beats at trendline support:
Zoomed in, the current support near 0.6150 would be expected to hold and result in a meanwhile correction. So long as 0.6200 holds, 0.6100 will be eyed on a test of the trendline support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.