- NZD/USD bulls face significant resistance as the dollar falters.
- Bulls are looking for a break of the recent highs, but bears are on the prowl.
The pair NZD/USD It has run into major resistance, and it raises the question of whether the bulls will stay the course as we approach critical events on both the US and New Zealand calendars.
The chart below illustrates the recent rise in the US dollar and the prospects for a correction in the coming sessions.
NZD/USD daily chart
As illustrated, the Kiwi bottomed out leaving behind a W formation:
Price is running into daily trend line resistance and has left the harmonic pattern as a reversal outlook at 0.6200:
DXY index
For its part, the US dollar remains under pressure while below its own trend line of resistance:
DXY hovering around the 102 area despite US and global recession fears. However, the prospects of a less aggressive Federal Reserve have scared away investors from the dollar. Unless the bulls manage to pick up the trend, there are serious chances of a breakout that could send the kiwi much higher.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
