NZD/USD 4-Hour Time Frame Analysis
NZD/USD 4-Hour Time Frame Analysis
On the 4-hour time frame, NZD/USD is creating new highs and lows after breaking two previous resistance levels between 0.56900 and 0.57200, which are now acting as our minor key support. Following a false break, the price retested the 0.56900 level before pushing higher, accumulating increased buying volume. This accumulation suggests the market is preparing to hunt for liquidity.
Our objective is to wait for the price to create additional liquidity within the liquidity zone and observe whether the price breaks above the minor key level (0.57200). A confirmed 4-hour candle close above 0.57200 will validate a bullish bias.
Trade Plan:
Entry: Buy limit at 0.57250 (upon 4-hour candle close confirmation above 0.57200).
Stop Loss (SL): Below the liquidity zone at 0.56840.
Take Profit (TP): Next resistance level at 0.58070.
Fundamental Analysis:
As of February 26, 2025, China's Politburo has announced plans to implement more proactive fiscal and moderately loose monetary policies to stimulate economic growth throughout the year. These policy shifts were outlined during the December 2024 Central Economic Work Conference, which set key targets and policy intentions for 2025.
Key measures include a substantial increase in funding through ultra-long treasury bonds, with a focus on business investments and consumer initiatives. These initiatives involve subsidies for trading in old cars and appliances and upgrading business equipment. While the policies have been announced, their full implementation is ongoing throughout 2025 (Source: Reuters).
China’s proactive fiscal and monetary measures present a positive outlook for the NZD/USD pair. As these policies take effect, increased demand for New Zealand exports and improved global trade sentiment could strengthen the NZD. If these measures prove effective, the NZD/USD pair may experience renewed upward momentum, creating a more favorable environment for the New Zealand Dollar in the near future.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves risk, and you should conduct your own research before making any investment decisions. Past performance does not guarantee future results.
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