NZDUSD Is in an Uptrend in a General Downtrend

NZDUSD Analysis – Price Is in an Uptrend in a General Downtrend

NZDUSD is in an uptrend in a descending market. The price has restarted yet another back and forth movement cycle in its general downtrend. Bears were assumed to have brought an end to the cycle of movements when the price touched down at the 0.62290 significant level. This is already off the lower border of the descending channel. But the market engineered a reversal, and the price is now in another uptrend.

NZDUSD Significant Levels

Resistance Levels: 0.68000, 0.71500
Support Levels: 0.62290, 0.65330

The 0.71500 has been influential in directing the market despite the predetermined downtrend. The price level initially served as solid support from which the market leveraged its way to the 0.74580 resistance. It was at this point that the price descent began. 0.71500 was unable to prevent the market from registering a lower price level.

The bearish pressure on the market ensured the price sank below the 0.71500 critical level, such that it transformed into a resistance level. This ensured that the price fell further lower in the downtrend between September and November. Since then, the market has been undulating downward. The EFI (Elders Force Index) indicator suggests that bulls and bears have had their fair share of market dominance, but bears remain stronger.

Market Expectations

The bulls have now engineered a reversal and redirected the price upward into the descending channel. The EFI on the 4-hour chart shows that the bulls currently have the upper hand as they drive the market towards the channel’s upper border at around 0.68000. The MA period 20 (Moving Average) has also slid below the candlesticks to act as support as the market goes up.

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