{"id":1586,"date":"2024-04-04T12:00:00","date_gmt":"2024-04-04T12:00:00","guid":{"rendered":"https:\/\/alchemymarkets.com\/?post_type=market_insights&p=1586"},"modified":"2025-11-25T15:40:37","modified_gmt":"2025-11-25T15:40:37","slug":"nzdusd-at-trendline","status":"publish","type":"market_insights","link":"https:\/\/alchemymarkets.com\/it\/education\/market-insights\/chart-of-the-day\/nzdusd-at-trendline\/","title":{"rendered":"Chart of the Day: NZDUSD Approaches a Major Trendline Support"},"content":{"rendered":"\n
<\/div>Quick Tip:<\/span>\u00a0<\/span>NZDUSD is currently in a triangle, which means the key resistances to watch are within the pattern or at the top of the pattern.<\/div>\n\n\n\n
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NZDUSD is approaching a trendline formed by the 2022 and 2023 lows. If NZDUSD continues to climb lower towards approximately $0.59, this lower trendline could provide major support.<\/p>\n\n\n\n

Scenarios:<\/strong><\/h2>\n\n\n\n
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  • If NZDUSD holds, it may rally to retest the triangle’s top trendline at around $0.628.
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  • If the support is broken, then NZDUSD may retest the October 26 low of $0.57 or lower.<\/li>\n<\/ul>\n\n\n\n

    The previous two times this trendline support was met, NZDUSD made significant rallies of 18% and 10% respectively, so, we can safely assume this is a respected area of support. If broken, the implications could be catastrophic for NZDUSD.<\/p>\n\n\n\n

    Now, how likely is the trendline to break? It’s hard to say.<\/h3>\n\n\n\n

    The technicals tell us that the triangle should hold, and the DXY is approaching a resistance level at 105 and 107. However, as the conflict in the Middle East expands, we may begin to see investors derisk – therefore selling their assets back into USD to hold.<\/p>\n\n\n\n

    Either way, it would be prudent to keep a watchful eye on NZDUSD and other majors for a bullish reversal, or a bearish break in the upcoming days and weeks.<\/p>\n\n\n\n

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