NZDUSD - False breakout of resistance on a downtrend

Mar 5

NZDUSD is forming a false breakout against the backdrop of a strong dollar as it retests previously broken support (resistance at 0.59290)...



The dollar looks quite strong. The false breakout of the index produced a weak reaction, with the price returning to an upward movement, which is putting pressure on the forex market.
NZDUSD has broken out of consolidation, and the retest and consolidation of the price below the key resistance level confirms the weakness of the market against the backdrop of a strong dollar. Holding the price below 0.59200 could trigger a further decline.

Resistance levels: 0.59286, 0.59477
Support levels: 0.58430, 0.57804

The price has broken out of the key bullish range, a trend reversal is forming, and the breakdown of the 0.59300 structure confirms the bearish trend. We expect the decline to continue to 0.584 - 0.578.

Best regards, R. Linda!

Mar 7

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