NZDUSD Makes a Failed Low Before a Massive Bullish Move

NZDUSD Analysis: The Market Makes a Failed Low Before a Massive Bullish Move

NZDUSD makes a massive bull run on October 14, 2022, this was after a failed low price as the market failed to break below its previous low, indicating the end of bearishness in price action.

NZDUSD Significant Zones

Demand Zones: 0.60160, 0.58000
Supply Zones: 0.65800, 0.70000

After the failed low, a big bullish move cleared the initial buy-side liquidity. A structure break resulted from rejection after clearing the liquid. The Relative Strength Index shows that the price is leaving the overbought area and declining, which corresponds with the structure breaking down after clearing the buy-side liquidity.

This demonstrates the market’s clear bearish bias, and as a result, price declines are expected to occur approaching the recent bull run’s high and low equilibrium. Within the breaker region, prices are predicted to reach 70.5% (OTE) and 79.0% (OTE) levels (Optimum Trade Entry). This will increase the likelihood of more bullish moves.

Market Expectation

The market is more apparent on the 4H chart. There has been a clear break in structure and a slight pullback. The price is then expected to decline.

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