NZDUSD Buyers Return To The Market As Buying Momentum Increases

NZDUSD Analysis: Buyers Return To The Market As Buying Momentum Increases

NZDUSD buyers return to the market as buying momentum increases. While the market is yet to sail through the ongoing correction phase, the overall trend is still bullish. Recently, the price soared impressively to run through the buy-side liquidity above the 0.63150 high.

NZDUSD Significant Zones
Demand Zones: 0.60960, 0.55650
Supply Zones: 0.63790, 0.65380

The ongoing correction phase has been underway since January 2023. The market was in an uptrend before the beginning of the year. The extensive period of the correction phase must be due to the exuberant rally of the price from the 0.55650 support. During September and October last year, the New Zealand dollar crashed massively to the downside. This brought the price to the 0.55650 support, where a massive accumulation took place. Following the accumulation, an exuberant rally began, thereby setting off the markup phase. The unstoppable rally showed the absence of NZDUSD buyers as the New Zealand dollar rose against the U.S. dollar.

The market’s overall direction is still upward, especially after the retest of the 0.60960 price level. As the correction phase began, the price plunged suddenly to the downside. Owing to the sudden dive from the 0.65380 resistance, a bearish order block was created on February 1, 2023. As per the RSI (Relative Strength Index), NZDUSD has never been in an overbought state since this year began. However, the market seems to be skyrocketing into an overbought state as prices experienced a sudden surge to the upside.

Market Expectation

The four-hour intermittent high at the 0.63150 price level has been invalidated. This indicates that the bulls are beginning to take control of the market. However, NZDUSD is anticipated to make a short-term decline in the discount due to the indication of a weak bearish divergence.

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