NZDUSD Analysis: NZDUSD Continues Its Downtrend As Price Hits Major Resistance At $0.62480
NZDUSD continues its downtrend as the price hits major resistance at $0.62480. The main direction of the market has been to the downside since February 2023. As far back as the last quarter of 2022, the price was aggressively expanding upward. Currently, the market’s order flow is downward as BOS (Breaks Of Structure) keeps occurring to the downside.
NZDUSD Significant Zones
Demand Zones: $0.5790, $0.55120
Supply Zones: $0.62480, $0.65380
Following the recovery from the oversold state in October 2022, the NZDUSD surged upward aggressively. This aggressive expansion drove the market into an extremely overpriced state. The cross of the Moving Average Period 18 over the Moving Average Period 40 signaled a buy. This further elongated the expansion to the major resistance level at $0.65380. The resistance at $0.65380 caused a downward shift in the market structure as the bulls panicked.
An incoming downtrend occurred when the previous low at $0.61910 was invalidated. Subsequently, a retracement started, driving the market price into the $0.61910 zone. At this level, three EQHs formed, indicating a resistance level. Following this, the market crashed, leading to the creation of a bearish order block. A Break of Structure (BOS) occurred at $0.60840, confirming the bearish status of the market. Currently, NZDUSD is leaving the bearish order block in an overpriced state and is heading downward.
Market Expectation
A CHOCH (Change of Character) has occurred in the four-hour chart as the price broke the $0.61540 previous low. Should a retracement occur to the upside, exceeding the $0.62070 price zone is unlikely. NZDUSD is expected to keep sinking as soon as the FVG (Fair Value Gap) is filled.
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