Market Analysis – Kiwi Buyers are Pulling Strings
NZDUSD’s bearish trend loses ground. One key level that has recently caught the attention of traders is the 0.60310 level. Buyers are making a frontal attack on this level, but their intentions are not yet clear. Will they succeed in breaking through, or will they face a pullback?
NZDUSD Key Levels
Resistance Levels: 0.63770, 0.62820
Support Levels: 0.60310, 0.59000
For several months, the market has been trapped in a ranging pattern between the 0.62210 and 0.60310 key levels. However, at the beginning of 2024, there was a downward break into the 0.62210 market level. This break signaled a shift in market sentiment and set the stage for the current battle between buyers and challenges.
Recently, there has been a subtle break below the 0.60310 significant zone. Unlike the previous week, when the buyers were rejected at the 0.62210 market level, this time the sellers have gained the upper hand. The abundance of sell orders overwhelmed the market, leading to an influx of sellers entering the scene. As a result, the NZDUSD has become responsive only to bearish sentiment.
Despite the sellers’ dominance, the buyers are not giving up without a fight. The bulls are currently looking to drive the price back up, indicating that the sellers may not be as strong as initially thought. However, if the sell pressure continues to remain strong, the bears may drive the price even lower, triggering stop losses and reinforcing the downward momentum. This could potentially lead to a further breakthrough below the key level.
Market Expectation
Currently, the RSI indicator remains on the sell side, indicating that sellers are still in control. The seller sentiment is sticky and getting stronger, suggesting that the bears are ready to liquidate more positions and drive the price even lower, possibly towards the 0.59000 significant level.
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