Baxia Markets
May 16, 2024

NZDUSD Pulls Back After Three-Day Bullish Rally

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The NZDUSD pair is currently experiencing a pullback after a three-day bullish rally. On the 1-hour time frame chart, the price has entered the lower band of the Bollinger Bands indicator, indicating that the market is undergoing a short-term correction.


Despite the current pullback, the long-term sentiment for NZDUSD remains bullish. This is supported by the 50-day Exponential Moving Average (EMA) being positioned above the 200-day EMA, a classic indicator of a sustained upward trend. Additionally, the price is trading nearly 70 pips above the value area, reinforcing the bullish outlook.

NZDUSD Pulls Back After Three-Day Bullish Rally

During this bullish pullback, traders should monitor key support levels closely. The EMA 50 and EMA 200 are crucial support zones that could offer opportunities to re-enter long positions. A pullback to these levels could be seen as a chance to buy into the prevailing bullish trend at a lower price.


The MACD is positioned above the zero line, indicating ongoing bullish momentum. Although the RSI recently reached overbought levels, it is now pointing towards the 50% mark, suggesting the market is in a healthy pullback phase rather than a trend reversal.


Overall, the NZDUSD maintains a bullish outlook despite the current pullback. The long-term sentiment is reinforced by the EMA alignment and the price's position relative to the value area. Key support levels at the EMA 50 and EMA 200 present potential re-entry points for traders looking to capitalize on the upward trend. Momentum indicators like the MACD and RSI also support the notion of continued bullish momentum following the current correction phase.


Key Takeaways:

  1. NZDUSD experiences a pullback after a three-day bullish rally.
  2. On the 1-hour chart, prices are in the lower Bollinger Band, indicating a pullback.
  3. Long-term sentiment remains bullish with EMA 50 above EMA 200.
  4. Key support levels for potential re-entry are at the EMA 50 and EMA 200.
  5. MACD and RSI indicators remain bullish, suggesting continued upward momentum post-pullback.

Key Economic Releases to Watch Today


Actual -2.0% vs Forecast -1.5% vs Previous 0.0%


Actual -0.5% vs Forecast -0.3% vs Previous 0.0%

USD, Initial Jobless Claims

Forecast 219K vs Previous 231K

USD, Philadelphia Fed Manufacturing Index

Forecast 7.7 vs Previous 15.5



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