Range traders huddle up! NZD/USD looks ready to bounce from an established range support zone, with bulls holding the line so far.
Could this open the door for a move toward the higher areas of interest?
Let’s take a closer look at the 4-hour time frame:
NZD/USD 4-hour Forex Chart Faster with TradingView
Uncertainty around U.S. tariff policy and hawkish comments from FOMC members had traders unloading “risky” currencies like the New Zealand dollar and running to the Greenback.
Lately, though, some of the tariff and U.S.-Iran conflict nerves have cooled off. On top of that, Australia’s hotter-than-expected CPI print is helping revive demand for commodity-linked currencies like NZD.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
NZD/USD recently slid from the .6075 highs but found steady demand around the .5950 minor psychological handle.
And why not? The area lines up with the 200 SMA and the S1 Pivot Point at .5921, and it also sits right on a range support that has held at least twice since late January.
If we see more bullish candlesticks and sustained trading above the Pivot Point at .5987, that could attract fresh buying and lift NZD/USD toward the .6000 mid-range area, if not back to the .6075 highs.
On the flip side, a rejection around .5980 could cap the upside and send the pair back toward range support. If sellers take control, a move toward the S1 or even the .5900 psychological level would not be out of the question.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art highlights NZD/USD’s range support area. But as any pro will tell you, a great setup can still fail if the trader lacks the discipline to execute around it well.
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