NZDUSD Analysis: The market flips bearish as the price gets rebuffed at the supply zone
NZDUSD flips bearish as the price gets rebuffed at the supply zone of 0.65290. The MACD currently indicates that the market has been bullish for a long time. As the price rallies, it does so in fractals, moving from a bullish order block to a previous low.
NZDUSD Significant Zones
Demand Zones: 0.60600, 0.55120
Supply Zones: 0.65290, 0.70340
From the supply zone at 0.70340, the market began to decline aggressively on April 6, 2022. This decline continued until a swing was created at the 0.62160 price level on May 12, 2022. Price retraced upward from this level to seek buy-side liquidity within the trading range and around the 0.65290 resistance. From the 0.65290 resistance, NZDUSD continued its downward trend in fractals until the support at the 0.60600 price level was reached.
August 14, 2022, marked the beginning of a new swing leg in the market as NZDUSD sank deeply into an oversold region as indicated by the Relative Strength Index (RSI). As a result of the oversold region, the NZDUSD sellers exited the market in favor of the buyers. The price expanded swiftly upward, breaking previous highs until the supply zone at the 0.65290 price level was reached. After breaking previous highs, the price kept heading upward until the local high formed on August 14, 2022, was broken to grab buy-side liquidity. With the trading range defined by the 0.65290 and 0.55120 price levels, NZDUSD now appears to be heading into a discount range.
Market Expectation
After the buy-side liquidity grab, NZDUSD moved to change the market’s environment to the downside on the four-hour chart. Once the Change of Character (CHOCH) is successful, the price might keep heading down until the discount array is reached.
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