NZDUSD Immediate Resistance Is Around 0.6585

03 July 2020

NZDUSD might have carved a meaningful top around 0.6585 levels on June 10, 2020. The currency pair has been drifting sideways since then, and is trading around 0.6523 levels as we prepare to publish this article. Bears are looking poised to push through 0.6250 and 0.6050 levels in the next few weeks.

Let us have a look at probable wave counts here. The rally between 0.6470 and 0.6585 is looking corrective until now. We have labelled as a potential A-B-C on the 4H chart here. Also, with respect to the price action until now, it could be seen as 1, 2 and 3 within a potential impulse.

NZDUSD needs to push through 0.6585 interim resistance to complete an impulse wave that potentially began since 0.5470 mark. Until that happens, high probability remains for turn lower with 0.6585 in place.

The short term wave counts are as follows: The drop between 0.6585 and 0.6381 looks to be in 5 waves, making an impulse wave, labelled as wave I on the chart. Since then, NZDUSD might have carved a corrective wave ii, which might have terminated at 0.6536 today.

Also note that potential wave ii has reached close to the fibonacci 0.786 retracement around 0.6543. High probability remains for a bearish reversal from here, and NZDUSD could be heading towards 0.6250 and 0.6050 in the short term.

Most traders might have initiated fresh short positions around 0.6530/35 mark, with protective stop above 0.6600 levels and projected target towards 0.6230 and lower respectively.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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