The NZD/USD pair trades in a bear market below the 23.6% Fibonacci retracement level. However, the currency pair shifted above the 100-moving average in the 4-hour chart, facing the $0.593 resistance, backed by the Fibonacci resistance level.
Interestingly, the 4-hour chart formed a double-top pattern, which is a bearish reveal chart pattern. Meanwhile, the Stochastic Oscillator suggests the New Zealand dollar is overpriced against the Greenback, at least in the short term. Therefore, the market expects the downtrend to resume.
NZDUSD Technical Analysis – 29-November-2024
The immediate support is at $0.587. From a technical perspective, the downtrend could be triggered again if NZD/USD dips below the 0.587 mark. In this scenario, the price could revisit the 0.584 mark.
Conversely, the current uptick in momentum could extend to upper resistance levels if NZD/USD prices exceed the immediate resistance at $0.593. If this scenario unfolds, the next bullish target could be $0.597.