Technical Analysis:
On the 4-hour chart, the NZD/USD pair is exhibiting a bullish structure, forming higher highs and higher lows after breaking through two key resistance levels at 0.56900 and 0.57200, which are now acting as minor support zones.
Following a false breakout, the price retested the 0.56900 support level before resuming its upward movement, accumulating significant buying volume. This accumulation suggests a potential liquidity hunt as the market gathers momentum.
Key Trade Parameters:
Entry: Buy limit at 0.57250, contingent on a confirmed 4-hour candle close above 0.57200.
Stop Loss (SL): Positioned below the liquidity zone at 0.56840 to manage downside risk.
Take Profit (TP): Targeting the next resistance level at 0.58070.
Market Outlook:
Our primary focus is to monitor the price action within the liquidity zone. A confirmed break and sustained close above 0.57200 will validate a bullish continuation, providing a favorable opportunity for a long position.
Fundamental Analysis:
As of February 26, 2025, China's Politburo has announced plans to adopt proactive fiscal and moderately loose monetary policies to stimulate economic growth throughout the year. These initiatives were outlined during the December 2024 Central Economic Work Conference, which set the strategic economic agenda for 2025.
Key policy measures include:
Increased public spending through ultra-long treasury bonds.
Investment incentives targeting business growth and modernization.
Consumer stimulus programs, such as subsidies for vehicle and appliance upgrades.
While the full implementation of these policies is ongoing, their positive spillover effects are expected to influence global trade dynamics throughout 2025 (Source: Reuters).
Implications for NZD/USD:
China's proactive fiscal and monetary stance supports a positive outlook for the NZD/USD pair. As these policies drive economic activity, increased demand for New Zealand exports—particularly in agriculture and commodities—could provide upward momentum for the New Zealand Dollar.
If these measures are effectively implemented, the NZD/USD pair may experience sustained bullish momentum, offering attractive opportunities for market participants.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves risk, and you should conduct your own research before making any investment decisions. Past performance does not guarantee future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.