NZD/USD Attempting a Double Top at Resistance

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NZD/USD Attempting a Double Top at Resistance

After falling to a new low on the year around 0.7660, NZD/USD has rebounded. Price action has stalled as it approached a late-October resistance pivot at 0.7977. It is now developing a possible double top pattern. Let’s take a look at the 4H chart.

A double top is forming, with support at 0.79. A 4H bearish outside bar suggests we will have a double top attempt. If price does break below 0.79 the 0.7823-0.7850 area will come in play. This is a key area that contains several support factors. A break below 0.7820 would revive a bearish outlook, with pressure towards the 0.7660 low with risk of falling towards 0.76 in continuation of the prevailing downtrend. A hold above 0.7823 and a return above 0.79 would suggest further bullish correction with the 0.7977 under pressure with risk towards 0.80 and a previous resistance pivot at 0.8033.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.