The Turning Point for NZDUSD at Critical Resistance Level
29 December 2023
As we step into the final days of December, it's fascinating to observe the movements of the NZDUSD pair. After an impressive bullish run that commenced in early November, we're now witnessing a potential turning point. The pair's encounter with the significant horizontal resistance at 0.637 – a level that previously acted as a sturdy barrier in February, April, May, and July – is particularly noteworthy. The formation of shooting stars on consecutive days at this resistance suggests a possible shift in market sentiment.
What does this mean for traders? For now, the resistance at 0.637 remains a formidable obstacle. As long as the pair trades below this level, a bearish sentiment may dominate, hinting at a potential correction. However, should the pair successfully breach and close above this yellow-marked resistance, it could signal a continuation of the bullish trend and open the door for further upward movement.