NZDUSD Oversold bounce| Structural support| Long liquidity Evening Traders,
Today’s technical analysis – NZDUSD – recovering from an oversold bounce closing back into key structure where a test of local resistance is likely
Points to consider,
- Trend bearish (lower highs)
- Oversold bounce
- Local resistance confluence
- RSI at 50
- Stochastics valid sell cross
- Volume climax evident
Consecutive lower highs for NZDUSD, breaking key structure for what looks like a valid long liquidity hunt.
The oversold bounce broke back into structural support; price has been consolidating above this technical level where a retest is likely.
Local resistance itself has multiple confluences, the.618 Fibonacci and the 200 MA will converge as price trades closer.
The RSI is currently at 50, travelling in a wedge where a break will be imminent. Stochastics on the other hand has a valid divergence from price, an indication that momentum is stored to the downside.
A volume climax node is evident, bear volume had little follow through as bulls maintain price above structural support.
Overall, in my opinion, NZDUSD is likely to retest structural support due to bearish oscillators. An impulse move into local resistance is probable if support holds true.
What are your thoughts?
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And remember,
“All statistics have outliers. Money management, therefore, is key to the process of good trading.” ― Yvan Byeajee
