NZDUSD Drops as Market Ignores Bullish Order Block

NZDUSD Analysis: The Market Ignores The Bullish Order Block, Resulting In A Price Drop

NZDUSD drops as the market fails to respect the bullish order block. As they flooded the market with buy orders from the 0.55120 demand zone, the NZDUSD buyers made a long-term impression. Now that the NZDUSD purchasers are taking profits, the price direction appears to be moving into the discount.

NZDUSD Significant Zones

Demand Zones: 0.55120, 0.61560
Supply Zones: 0.65760, 0.70340

Since the market flipped bullish in September 2022, NZDUSD has been rising, according to the Moving Average indicator. Based on the price movement in April 2022, it was evident that the price broke through diagonal support to fall sharply to the downside. The market’s response to the 0.65760 price level caused the diagonal support to appear. Throughout February and April 2022, the diagonal support resisted downward price flow until the aggressive breakout.

NZDUSD was repelled by the 0.61560 support level. The price fell even more sharply to the downside as a result of both the selling pressure from the breakout and the selling pressure from the supply zone. In the middle of the market’s selling pressure and algorithmically generated bearish order flow, purchasers of the New Zealand dollar against the US dollar stormed the market with sizable buy orders accumulated at the 0.55120 demand zone. Until the time the price hit the 0.5680 supply zone, the bears had no chance to change the bullish market structure due to the overwhelming buying pressure from the 0.55120 demand zone.

Market Expectation

The market’s structure is now bearish on the four-hour timeframe chart following the third bounce off the rising trendline. As it descends to break the prior low at the price level of 0.61940, NZDUSD is anticipated to continue to trend downward.