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NZD/USD is slowing down after hitting the lowest level this year and has formed a Double Bottom pattern on the 4H chart. The pattern has 70% quality and 90% magnitude in the 153-bar period.
The pattern started when pair dropped from 0.8234 and after bouncing from 0.7455 for a few times while testing a resistance level at 0.7648 it has slowed down at 0.752 where the pair is currently trading. Aggregate indicators do not suggest clear emerging patterns at 4H and 1D time horizons but the Stochastic and the RSI indicators point at bullish market outbreak in 1W time horizon. Long traders could focus on the daily resistance level at 0.7563. If this level will be breached, next target could be at a second daily resistance at 0.7597.
Aggregate indicators on the 1W horizon strongly point at bearish market outbreak. Current market sentiment is around 70% bearish as well. Short traders could focus on the daily support level at 0.7526. If the pair breaches this level, next possible target could be at the second daily support at 0.7503.
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