NZDUSD Veers Upward As The Price Reaches The $0.58980 Support

NZDUSD Analysis: The Market Veers Upward As The Price Reaches The $0.58980 Support

NZDUSD veers upward as the price reaches the $0.58980 support. At $0.59850, the market witnessed a structural break during the ongoing downward price movement. Up until a recent upswing that followed a bounce off the $0.59850 support, the downtrend persisted. From this point, until the price reaches the $0.61540 resistance, NZDUSD is most likely to perform a bullish retracement.

NZDUSD Significant Zones
Demand Zones: $0.58980, $0.57250
Supply Zones: $0.61540, $0.65380

The market’s ability to remain in an overbought situation until the beginning of 2023 caused a devastating crash. Since the previous barrier at $0.57250 collapsed, the RSI (Relative Strength Index) for the NZDUSD has been above the 50.0 mark. The year’s high was formed at $0.65380 following a buy-side liquidity sweep in late January 2023. As soon as the high was formed, the upswing came to a stop, and the bulls left the market. From the $0.65380 major high, NZDUSD experienced a massive decline, which sank prices below the $0.61540 price level.

The price rose after the previous support level of $0.61540 was crossed, hitting equal highs at $0.63890 before falling to form the $0.59850 low. The liquidity grab was eventually structured to move in an upward direction, invalidating the equal highs. The price continued to decline, breaking the market’s structure and setting a new low at $0.58860 as it did so. Due to the RSI’s hint following the low’s development, the NZDUSD veered upward, and a correction phase started.

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Market Expectation

The market’s four-hour diagonal resistance was broken as soon as the price reached the $0.58980 level of support. The market is now trading in a range of $0.64120 to $0.58860. Before continuing its descent, NZDUSD is anticipated to rise into the $0.65140 supply zone.