NZDUSD Plummets as Sellers Dominate Bearish Order Block

NZDUSD Analysis: Price Collapses As Sellers Storm The Market At Bearish Order Block

NZDUSD collapses as sellers storm the market at the bearish order block. NZDUSD rallied shortly into the bearish order block after reaching a new low in the 0.6000 area. However, because the overall order flow is negative, the bearish order block will likely result in a break in the structure.

NZDUSD Significant Zones
Demand Zones: 0.5800, 0.55120
Supply Zones: 0.62480, 0.65380

NZDUSD made an upward reversal on March 6, 2023, after establishing a three-month low. After experiencing intense selling pressure in its overbought condition, the market is now moving downhill. The Stochastic Oscillator provided the overbought indication following the upward correction from the 0.6000 price zone. NZDUSD now appears to be under selling pressure as it falters to continue rising sharply. Price will probably respond to the bearish order block aggressively if the overall trend is to continue.

NZDUSD quickly rallied after the current one-year low was established as it soared. On October 16, 2022, after the prior declining trend came to a stop, the low was established. NZDUSD failed to create a significant reversal as the upward trend persisted until the 0.62480 price level was breached. The stochastic oscillator usually stayed above the 80.0 level throughout November 2022. The 0.62480 price level has historically demonstrated substantial resistance to price flow. As a result of the resistance at the 0.62480 price level, the present general trend is likely to continue.

Market Expectation

On the four-hour chart, the price is starting to decline as it records lower highs and lows. As the NZDUSD moves in the direction of the previous low, the bearish trend is anticipated to continue.