Long-Term Support Holds for NZD/USD: Bias Turns Positive

In today’s analysis, we focus on the New Zealand dollar to American dollar (NZD/USD) from a long-term perspective using the weekly chart. The pair is currently showing signs of a rebound from a critical horizontal support level. This support, marked in yellow, corresponds to the lows from 2020 and 2022, making it a key area of interest for traders.

Over the past two weeks, the price has moved higher, suggesting that demand has re-emerged at this crucial support level. The bounce reinforces the significance of this area, as buyers have stepped in to defend it. However, this week’s price action remains uncertain. To gain a clearer view of the market bias, traders should wait for the weekly candle to close.

If the price continues to hold above the yellow support, it sets up a potential buy signal, with the next target being the blue horizontal resistance—the lows from mid-2024. As long as the support holds, sentiment remains positive for a move higher within the long-term structure.

However, should the price break below the yellow support, this would negate the bullish outlook and could signal further downside.

Source: https://www.axiory.com/analytics/technical-analysis/long-term-support-holds-for-nzd-usd-bias-turns-pos