Based on the provided 4-hour chart of NZD/USD, here is a brief summary and outlook.
The NZD/USD pair has been in a downtrend, trading within a descending channel since early July. The price recently rallied to retest the upper boundary of this channel and a resistance zone around 0.5950. The chart shows a potential short position being set up as the price failed to break above this resistance and the trend channel's upper line.
The expectation is for the price to be rejected at the current level and continue its downward movement. The target for this short trade is the support zone around 0.5850. The stop-loss is placed just above the recent high and the resistance zone, which would invalidate the bearish thesis if breached. A successful move to the target would be in line with the established bearish trend of the channel.
The overall sentiment for the pair appears to be bearish, as long as the price remains within the descending channel. A confirmed rejection from the upper trendline provides a strong signal for a potential short trade. A break above the resistance at 0.5950 would be a significant development and could signal a shift in market momentum. The support at 0.5850 is a key level to watch for potential profit-taking.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.