NZDUSD Consolidates as Market Anticipates Breakout

NZDUSD Analysis: The Market Keeps Consolidating As Buyers and Sellers Await A Breakout

NZDUSD keeps consolidating as buyers and sellers await a breakout from a triangle pattern. The consolidation phase began after the liquidity grab was below the 0.61910 price level. This was revealed by the Bollinger Bands as they contracted around the 0.61560 support.

NZDUSD Significant Zones

Demand Zones: 0.61560, 0.55120

Supply Zones: 0.65380, 0.70340

 The market turned bearish in February 2023 when the Bollinger Bands widened to the downside. NZDUSD was initially bullish before the situation changed to the downside. As the price was rejected at the level of 0.55120, the bullish trend started. The bearish order block near 0.57410 was invalidated when the price increased. The surge of buy orders by the buyers at the 0.55120 support was what caused the invalidation. But, in the future, the invalidated order block that was established on October 5, 2022, might reject pricing upward.

 Up until October 2022, the market was in a bearish condition. Before rising to make a swing high at the 0.64690 level, the price consolidated briefly above the 0.61560 support. As the swing high was established, the NZDUSD buyers left the market. On December 13, 2022, the swing high was, however, declared invalid. Prices are still forming a triangle pattern at this time. The market’s next move is anticipated to be determined by a real breakout. Should the price break downward, the breaker block at 0.57410 might reject the price to the upside. In a similar vein, should the price break upward, the bearish order block at 0.64690 might reject pricing to the downside.

 Market Expectation

 On the four-hour chart, NZDUSD is in a bullish trend. The four-hour bullish order blocks have been responsible for the continuation of the bullish trend. The relatively equal highs at the 0.62810 price level are expected to be broken as the price continues upward.