NZDUSD touch RESISTANCE line and FALL

Dec 17, 2020

In January 2020, the price collapsed very much, falling behind a strong support line. This line has existed on the chart since 2009 and up to this point it has often stopped the price drop.

However, at this rate, the yen was first able to break through during the fall - which occurred as part of an older downtrend. The first serious price collapse occurred in 2018, then it moved relatively evenly for some time on the older TF, after which it collapsed again.

However, at the point 0.547 - the annual low of the price - it received an impulse for growth and, as a result, was able to grow and break through the support line again, this time during the growth.

Now the price is again within the resistance line - which followed the cause of the collapse in 2018 - and therefore I do not think it will be able to break this line. I expect the price to touch it at 0.724, then reverse and fall. Thus, the final target that I expect is the 0.687 support line.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻