Chart the Market (03/06/2025)

NZDUSD, H4: 

The NZDUSD pair has confirmed a significant bullish trend after finding strong support at the 61.8% Fibonacci retracement level (0.5940) and subsequently breaking out to fresh two-year highs above 0.6050. This decisive upward move suggests a structural shift in favor of continued appreciation, with the breakout potentially marking the beginning of a new bullish phase for the pair.

However, the appearance of a bearish engulfing candlestick pattern at current levels warrants caution, as this classic reversal signal often precedes short-term pullbacks following extended rallies. This potential consolidation would represent a natural market reaction after the pair’s strong upward momentum, allowing traders to reassess positions before determining the next directional move.

Momentum indicators present an interesting dichotomy. The Relative Strength Index’s approach toward overbought territory suggests the rally may be nearing temporary exhaustion, while the Moving Average Convergence Divergence’s sustained position above the zero line confirms the underlying bullish trend remains intact. This combination typically signals that while near-term consolidation is possible, the broader upward trajectory appears well-supported.

The pair’s future direction will likely hinge on its behavior around key psychological levels. The 0.6000 mark now serves as important support, with a successful defense of this level potentially reigniting bullish momentum for another test of recent highs. Conversely, a deeper retracement toward the 0.5960-0.5940 support zone could emerge if profit-taking accelerates, though this

Resistance Levels: 0.6082, 0.6160

Support Levels: 0.5990, 0.5920

EURGBP, H4

The EURGBP pair has staged a notable recovery from its recent low near 0.8360, advancing toward a critical resistance level at 0.8460. A decisive breakout above this threshold would signal a potential bullish trend reversal, marking a significant shift in the pair’s trajectory after its previous downward movement.

Supporting this constructive outlook, momentum indicators are flashing encouraging signals. The Relative Strength Index (RSI) continues to climb and is approaching overbought territory, reflecting strengthening buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) has not only crossed above the zero line but continues to trend higher, confirming that bullish momentum is gaining traction.

Should the pair successfully breach 0.8460, it could open the door for further upside toward 0.8500-0.8520, where the next resistance zone may emerge. Conversely, failure to break through might lead to a retest of support near 0.8400-0.8380, though the improving technical backdrop suggests dips could attract fresh buying interest.

Resistance Levels: 0.8461, 0.8525

Support Levels: 0.8400, 0.8320