Market Analysis: Price Experiences a Bearish Pullback
NZDUSD Price experienced a notable bullish trend at 0.58760, has seen as it swiftly ascent towards the 0.62170 supply zone. This level has proven to be a formidable barrier, curtailing the upward trajectory of the price, despite the daily Moving Average presenting a bullish outlook.
NZDUSD Significant Zones
Resistance Levels: 0.62170, 0.63670
Support Levels: 0.60380, 0.58760
An examination of the daily Relative Strength Index (RSI) reveals that NZDUSD price is hovering around the 70.0 threshold. This proximity to the overbought territory brings forth the anticipation of a bearish reversal. However, the expected bearish price action is not indicative of a trend reversal but rather a retracement towards an untouched daily bullish order block, suggesting that the bearish movement could be a temporary pullback within an overall bullish context.
Expanding our analysis to the 4-hour timeframe, a continuation of the bullish sentiment is witnessed, as the RSI climbs towards overbought levels. This suggests that the short-term bullish trend may persist. Nonetheless, the emergence of a 4-hour order block is expected to act as a catalyst for a trend reversal, precipitating a decline in price as it seeks the daily bullish order block.
Market Expectation
While short-term price action suggests bullish conditions, a potential bearish shift is expected as the price is projected to trigger the daily bullish order block. The bullish order block now serves as a support for the price as it resumes its initial bullish trend.
Note: Forexschoolonline.com is not a financial advisor. Research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
Leave a Reply