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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