Market Analysis – NZDUSD Exhibits a Bearish Trend
NZDUSD market eyes liquidity below the 0.57930 mark. NZDUSD is currently exhibiting a bearish trend, indicating a strong bear in market sentiment. Sellers aim for the liquidity levels that lie beneath the significant 0.57930 support threshold, which if breached, could signal a further downward movement.
NZDUSD Key Levels
Demand Zones: 0.60000, 0.57930
Supply Zones: 0.62000, 0.63750
The NZDUSD pair has been steadily declining since reaching a major high in late January 2024. The formation of lower lows has resulted in the current bearish trend, with prices recently breaking below the 0.60000 demand level. The next target for price movement is the liquidity area below the major low formed in mid-October 2022.
The Moving Average indicates a bearish bias, with the current price below its mark. The Fair Value Gap (FVG) above 0.60000 is likely to be partially filled before reaching liquidity at 0.57930. The Relative Strength Index shows the price nearing the 70.0 overbought region, suggesting a potential move into the overbought zone and potentially little resistance to a market downturn.
Market Expectation
The market is currently displaying minor bullish trends towards the Fair Value Gap. However, this upward movement is expected to be temporary until the market fills the gap and takes out liquidity. Additionally, there is a possibility of a significant crash as the price is in the overbought zone on the Relative Strength Index, indicating weakness in buying signals.
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