NZD/USD is testing the bottom of a months-long range!
Are we about to see a breakout? Or will enough NZD/USD bulls step in and keep the pair in its range?
We’re looking at the 4-hour chart today!
NZD/USD 4-hour Forex Chart by TradingView
In a few hours, the Fed will drop its monetary policy decisions and projections for the month of March. Our FOMC Statement Event Guide points out that it’s gonna be a big deal for the market players so make sure you’ve read all about it if you’re planning on trading the event!
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. and New Zealand dollars, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
NZD/USD may be in a good place if today’s events lead to a pro-risk, anti-USD trading environment. The pair is hanging out near the 4-hour chart’s S1, which conveniently lines up with a resistance zone from late 2023 as well as the bottom of a range that’s been solid in 2024.
Will NZD/USD bulls step in to keep the pair inside its 2024 range? Or are NZD bears just waiting for a catalyst to bust NZD/USD out of its range?
Bullish candlesticks in the next trading sessions could draw in NZD/USD bulls and push the pair back to the .6100 psychological level. And, if there’s a bullish catalyst, we may see NZD/USD head for the .6130 mid-range zone or the .6200 range resistance area.
If today’s events lead to more risk aversion or USD-buying, however, then NZD/USD could extend its weekly downswing. The pair may pop up convincing bearish candlesticks and attract enough NZD bears to drag NZD/USD to the .6000 psychological level if not the .5950 previous area of interest.
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