FX.co ★ osenger | NZD/USD

In the NZD/USD pair, today the market opened with a significant gap, which has not been filled yet. During the Asian session, buyers are moving confidently to the upside and have already managed to surpass the Friday's daily high, testing the local resistance level at 0.59690 from bottom to top. Given the current situation, I plan to observe the mentioned resistance level today, where two scenarios may unfold. The first scenario involves the formation of a reversal candle and a resumption of the price movement downwards. If this scenario plays out, I will expect the price to move towards the support level at 0.58595. If the price consolidates below this support level, further downside movement is expected towards the next support level at 0.57732. Near this support level, I will wait for a trading setup to determine the next trading direction. Of course, I acknowledge that during the price movement towards the mentioned southern target, there may be northern retracements, which I plan to use to search for bearish signals from nearby resistance levels, anticipating a continuation of the downward movement within the overall bearish trend. An alternative scenario for the price movement during today's testing of the resistance level at 0.59690 would be a plan where the price consolidates above this level and continues moving upwards. If this plan unfolds, I will expect the price to move towards the resistance level at 0.60147. Near this resistance level, I will continue to look for bearish signals, anticipating a resumption of the downward price movement. There is also a possibility of reaching more distant northern targets, but I am not considering it at the moment as I do not see the prospects for its quick realization. In general, if to put it briefly, I currently do not see anything interesting locally for myself. Overall, I am oriented towards a resumption of the southern trend, hence I am searching for bearish signals from nearby resistance levels.