Is NZD/USD Reversing Back Down After False Breakout? Expert Analysis Revealed!
The NZD/USD pair is currently at a critical juncture, with signs pointing towards a potential reversal back down after a recent false breakout. While the trend remains bullish on the daily chart, there are concerns about the sustainability of the upward momentum.
After breaking out of its consolidation range, the pair failed to sustain the upward movement and has started showing signs of weakness. This has raised doubts about the validity of the breakout and the possibility of a return to the range lows.
Despite the uncertainty, there is still a chance for a recovery and a push towards higher highs. The breakout above the August 20 high initially seemed promising, but the lack of follow-through has cast doubt on the bullish outlook.
NZD/USD Daily Chart
If the correction phase comes to an end, we could see the pair finding support and resuming its upward trajectory. The next upside target is set at 0.6409, with a more ambitious target at 0.6448 if the breakout momentum is sustained.
However, there are warning signs of a possible trend reversal on the 4-hour chart, which could indicate a bearish turn for NZD/USD. A daily close below 0.6220 and confirmation from the Moving Average Convergence Divergence (MACD) would strengthen the case for a bearish trend.
In conclusion, while there is still potential for a bullish continuation, investors should remain cautious and monitor key support levels for signs of a trend reversal. Stay tuned for further updates on the NZD/USD pair!