NZDUSD Demand Zone Is Likely to Turn Into a Supply Zone

NZDUSD Analysis – The 0.67120 Demand Zone Is Likely to Turn Into a Support Zone

NZDUSD demand zone is likely to turn into a supply zone at 0.67120. The dollar has gained more strength, and this has caused more bearishness in the market. The Moving Average period 9, and the Moving Average period 21 crossed on the 11th of November 2021. The market crossed underneath the supply zone. This led to the market’s price dropping from the supply zone.

NZDUSD Major Zones

Supply Zone: 0.73120, 0.72120, 0.68520
Demand Zone: 0.65420, 0.67120, 0.69720
The market faced little resistance at 0.69720. The demand zone acted as a resistance level on the 6th of October last year, but he bears crossed the zone easily. The Moving Averages guided the market down to 0.67120. The bears anticipated higher pricing, but we’re hindered at 0.68520. The month of December into early January was ranging. The market bounced back and forth between the 0.68520 supply zone and the 0.67120 demand zone.

All through the period of consolidation, the bears were getting ready to launch out. The Moving Averages finally crossed in the short-term ranging market on the 17th of January. The sellers went short all the way to 0.65420. All through the bearish run, from the 17th of January, the bears did not face any obstruction. Finally, the bears got exhausted by the long-term defended demand zone at 0.65420. The bulls immediately stepped in and have been pumping the market price.

What to Expect From NZDUSD

The candles on the four-hour chart have smashed into the trend line. This has acted as support at the 0.65420 supply zone. The Moving Average period 9 (blue) and the Moving Average period 21 (red) have switched positions to the lower side of the candles. Both Moving Averages have crossed, facing upwards. This is seen with bullish candles on the four-hour chart. The Relative Strength Index also shows that the market is very bullish in the four-hour time frame. The market is drawing towards 0.67120. NZDUSD demand zone at 0.67120 is likely to turn into a supply zone.

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