Good Morning traders! Today, we will carry out an analysis on the NZD/USD, since it is in a critical zone and can generate an interesting movement in the short term.
🔸Technically speaking, we see the price in a consolidation structure that has been in place for a few months.
🔸During the last few weeks, we saw a very aggressive bullish movement, which reached the upper trend line of this structure.
🔸This is a level where we will most likely see a reaction.
🔸We must be prepared for both situations, both bullish and bearish.
- The bullish scenario implies a breakout of the downtrend line. If this happens, we will look for a correction and the next bullish move.
- The bearish scenario implies that the price cannot break the trend line and bounces lower. If this happens, we will likely see a retest of the support zone.