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NZDUSD, Candlestick Analysis
12/29/2022 10:25 AMNZD/USD, H4
On the four-hour chart, at 0.6247, a series of Hammer reversal patterns are forming, signaling a high potential for growth in the trading instrument soon, as well as the “bullish” Engulfing pattern. At 0.6297, a Dragonfly Doji figure appeared, the lower Shadow of which confirms the intention of buyers to continue the upward dynamics to the resistance level of 0.6408, the breakout of which will open the way higher to the zone of 0.6596−0.6890. An alternative scenario is possible if the “bears” consolidate their positions below the support level of 0.6247, and the decline will intensify to the area of 0.6006−0.5823.
NZD/USD, D1
On the daily chart, at 0.6408, a Double bottom price pattern appeared. However, one of the key resistance levels (0.6247) became a support level, where the price corrected after the model was built, and now, the “bulls” are probably forming a new springboard for the continued growth of quotations. It is confirmed by forming a series of Inverted hammer patterns at 0.6247. In the current situation, the most likely scenario is with upward dynamics to the resistance level of 0.6408 after a short consolidation of the asset, after which the instrument may head to the area of 0.6596−0.6890.
Support levels: 0.6247, 0.6006, 0.5823. | Resistance levels: 0.6408, 0.6596, 0.6890.