NZDUSD found strong support at 0.5882 after the U.S. bombing in Iran triggered selling. It rallied impressively for two days, moving over the 50% retracement level from May’s low at 0.5966 and surpassing both the 100-hour moving average at 0.5984 and the 200-hour moving average at 0.6007. This shift suggests a more positive outlook in the short term. However, resistance at 0.6040 limited further gains. During the U.S. trading session, the pair fell from 0.6040. Yet, the support from the 200-hour moving average re-emerged, drawing interest from buyers during price drops. Staying above this level is crucial for maintaining a bullish view.

Key Support and Resistance Levels

Breaking above 0.6040 is vital to aim for the next resistance level between 0.60558 and 0.60649. If sellers regain control, keep an eye on support at the 38.2% retracement level at 0.59948 and the 100-hour moving average at 0.5984. Falling below these levels would weaken the technical outlook. The market is currently consolidating with a bullish tendency, needing a clear break above 0.6040 for renewed momentum. Key support and resistance levels include 0.6007, 0.59948, 0.5984, 0.6040, 0.60558, and 0.60649. Following recent geopolitical tensions, the currency pair is recovering, especially after bouncing back from 0.5882. This quick rebound, moving through the midpoint of the previous decline and breaking both short- and medium-term moving averages, indicates a shift. It shows that traders are gaining confidence to buy on dips rather than sell on rallies. Still, the response at 0.6040 has shown limits for immediate progress. This level has proven to be strong resistance, marking the upper end of a compression zone over the last two trading sessions. Buyers have pulled back slightly as the price approaches this level, but support at the 200-hour moving average at 0.6007 has consistently held, with buyers coming in almost automatically at this point.

Price Behavior and Actionable Range

This price behavior creates an actionable range. Staying above the 200-hour moving average indicates the market is still ready to test higher levels. For those trading strategically, the range from 0.60558 to 0.60649 is the next area to consider for profit-taking or evaluation. This zone has not been reached recently and may attract short-term interest from risk-averse traders. If sellers attempt to regain control—potentially in response to negative data or a resurgence of overall market risk aversion—then the technical levels below should be seen as short-term checkpoints. Dropping below 0.59948 could change sentiment toward neutral, and any candle closing below the 100-hour moving average would be significant, especially if accompanied by weakening sentiment in commodity-related markets. Currently, we are observing ongoing compression between both sides trying for control. Immediate highs are clearly defined, providing solid markers for further setups. At the same time, the downside remains well-organized, offering safety nets rather than leading to a total decline. For now, price action remains stable within a slightly upward bias, but this holds only as long as key support levels are maintained. The next trading sessions may see attempts to extend these moves, possibly intensified by lower liquidity. Whichever direction it breaks, strong conviction will need confirmation above or below the established zones, rather than through mid-range positions. Let the movement guide our reactions rather than predict and act prematurely. Create your live VT Markets account and start trading now.

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