NZDUSD Maintains Its Bullish Trend After A Bounce Off 0.61120

NZDUSD Analysis: The Market Maintains Its Bullish Trend After A Bounce Off 0.61120

NZDUSD maintains its bullish trend after a bounce off 0.61120. Since the pause in the rally early this year, the market has been in a correction phase. Nevertheless, the NZDUSD buyers seem determined to take control of the market. The recent drive to the upside indicates the presence of the bulls as they reenter the market.

NZDUSD Significant Zones
Demand Zones: 0.61120, 0.59690
Supply Zones: 0.63790, 0.65380

Since the completion of the bullish trend that brought the price into the 0.63790 supply zone, NZDUSD has been moving unimpressively. According to the MACD (Moving Average Convergence Divergence), the price reversed after breaching the supply zone of 0.63790. Following the correction after breaching the 0.63790 supply zone, the price continued upward to create a higher high. The higher high has since been the year’s high, as the price now struggles to expand upward.

On the first trading day of February 2023, the last bullish candlestick to the year’s high formed. Following the creation of this, the price delivered aggressively to the downside. The aggressive delivery to the downside was because of the exuberant rally in December last year. The bears stormed the market and drove prices into the 0.61120 demand zone. Due to the buying pressure at the demand zone of 0.61120, the bears could not continue downhill. Currently, the market seems to be regaining its buying momentum as NZDUSD leaves the bullish order block.

Market Expectation

The four-hour chart shows the market is currently within the major levels of 0.61120 and 0.63790. After executing the buy orders at the daily bullish order block, NZDUSD is expected to keep trending upward.