NZDUSD Bears Invade The Market As Major Support Fails

NZDUSD Analysis: Bears Take Over as Key Support Fails

Bears infiltrate the NZDUSD market as major support fails to reject the price to the upside. At 0.61910, the price ran through the sell-side liquidity with a bearish marubozu candlestick. More bears entered the market as a result of the marubozu candlestick as the market’s order flow became bearish.

NZDUSD Significant Zones
Demand Zones: 0.615600, 0.551200
Supply Zones: 0.657600, 0.703400

The price appears to always bounce off of or retest the 0.61560 price level in response to it. NZDUSD had a major drop on June 3, 2022. This occurred from the 0.65760 resistance before it was retested to the upside. Following the rejection, the price increased to surpass the prior high of 0.63950 and capture the buy-side liquidity. The 0.61460 level was later breached in August 2022 but was retested in the first week of September 2022. As the NZDUSD bears flooded the market with sell orders, the initial uptrend ended.

The MA Cross indicates that the market is now moving downward. This took place following the purchase of buy-side liquidity (BSL) at the previous peak. The market was altered as the bears entered on February 2, 2023. Although NZDUSD was typically bullish and bulls dominated. If the price moves into an oversold area, an algorithmically generated retracement to the upside may be required. To mitigate the failed bullish order block above the 0.61560 support, NZDUSD may retrace upward. However, that will be after the oversold region is reached.

Market Expectation

Following a Change of Character (CHOCH) to the downside and the breaker block retest, the market is bearish on the four-hour chart. Although a retracement into the premium may be inevitable, NZDUSD will likely continue to plunge downhill afterward.