RLinda ! NZDUSD-> Price is testing the level. Rising or falling?

26 oct 2022

The NZDUSD is forming a local distributive movement to the resistance zone of 0.5805. What to expect next?

We see the formation of resistance level at the price of 0.5805, the subsequent confirmation of the level by a false breakdown tells us about the presence of an important zone for the price. A struggle between the players is forming in this area, buyers and sellers are trying to strengthen their positions. Thus, under the condition of consolidation from above or below the level, further movement can be assumed.

I assume that at this point two scenarios are possible:
1) False breakdown and price consolidation under the level of 0.5805, in which case you can expect a pullback:

• - The short-term target is the support level 0.5726.
  
• - Mid-term target - level 0.5679
  

2) Breakdown and consolidation above the level of 0.5805 after the pullback. In this situation the bulls will show their position and the growth will continue.

• - The short-term target in this case will be 0.5887.
  

Regards R.Linda!