FX.co ★ shahida89 | NZD/USD

Technical Analysis of NZDUSD H4 Chart Overview The provided chart shows the NZDUSD currency pair on a 4-hour (H4) timeframe. Well break down the technical analysis using support and resistance levels, volume indicator, and Relative Strength Index (RSI) to predict market movements and discuss risk management and money management. Support and Resistance Levels Looking at the chart: *Resistance*: The price has been pushing towards the 0.5805 level but hasnt broken through strongly. This could act as a resistance zone. *Support*: Around the 0.5640 level, theres a previous area where price bounced, indicating potential support. Volume Indicator Volume has been fluctuating but shows some spikes during price movements. Green bars indicate buying volume, and red bars indicate selling volume. Recent volume (329) isnt extremely high but shows some buying interest as the price moves up. RSI (Relative Strength Index) RSI(14) is at 60.30, which is above 50 but below 70. This suggests the market is in a bullish zone but not overbought yet. Market Prediction Based on these indicators: The price is trending upwards after breaking above a previous range. With RSI not in the overbought zone (below 70) and price above a moving average (red line crossing above blue), theres potential for further upside. Watch for a break above 0.5805 for stronger bullish momentum or a drop below key support levels for a bearish turn. Risk Management *Stop Loss*: Set stops below key support levels (like 0.5640) for long positions or above resistance for short positions. *Position Sizing*: Adjust position size based on risk tolerance and stop loss distance.

Money Management *Risk/Reward Ratio*: Aim for at least a 1:2 or 1:3 risk/reward ratio on trades. *Trade Management*: Monitor trades and adjust stops to lock in profits as the trade moves in your favor. Detailed Breakdown (Continued) Using Support and Resistance for Entries Look for entries near support levels for longs or resistance for shorts. Confirm with RSI and volume for strength of move. Volume and RSI Confirmation Increasing volume with price moves up supports bullishness. RSI above 50 but below 70 suggests bullish momentum without overbought conditions. Managing Trades Monitor price action around key levels. Adjust strategies based on breaking resistance or bouncing off support. Conclusion Technical analysis of the NZDUSD H4 chart shows potential for bullish continuation given current trends, RSI, and volume patterns. Proper risk and money management are crucial for trading success.