NZDUSD Enters Fifth Wave After Breaking Bullish Order Block

NZDUSD Analysis: The Market Begins Its Fifth Wave As Price Leaves The Bullish Order Block

NZDUSD begins its fifth wave as the price leaves the bullish order block. The market has begun the fifth wave as it reversed around the $0.61400 zone. The Stochastic Oscillator indicated that the bullish order block was at an oversold region. A rally to the upside is likely to ensue since the market’s environment is bullish.

NZDUSD Significant Zones
Demand Zones: $0.59850, $0.58400
Supply Zones: $0.63900, $0.65380

The market trading range since the beginning of the month is between 0.60500 and 0.64120 price levels. NZDUSD is heading to break the high of the range as the buy program resumes. The Moving Average Period 18 has crossed the Moving Average Period 40 to the upside. This indicates that the bulls have successfully returned to the market. It’s most likely that the bullish trend will continue as the next phase begins with an inside bar candlestick.

During a massive rally in November 2022, A Fair Value Gap (FVG) formed due to the rapid expansion. Owing to the piles of buy orders at the FVG, the market’s environment flipped bullish in June 2023. The change of environment occurred as the price entered the FVG and hit major support at $0.59850. A bullish order block emerged as the market’s atmosphere shifted due to a price reversal. The return to the bullish order block instigated the third wave of the ongoing overall trend. The order flow of the NZDUSD is still bullish and might continue until it hits the $0.63900 resistance.

Market Expectation

The bullish trend has begun on the four-hour chart. This followed the rejection of the price at the bullish order block. NZDUSD is expected to continue expanding upward until the $0.63900 resistance is hit.