NZDUSD Price Indicates a Shift in the Market Trend

NZDUSD Analysis: The Price Shows Signs of Change in the Market Trend

NZDUSD price indicates a shift in the market trend. Since the breakout from the major diagonal resistance, the market has been in a bullish trend. While the market is now showing some signs of a trend change, the flip needs to be confirmed by the reaction of price towards the daily bearish order block.

NZDUSD Significant Zones

Demand Zones: $0.61620, $0.55120
Supply Zones: $0.70340, $0.65140

The major trendline seems to have run out of the path as the price broke through it to the upside. However, a downtrend from the $0.65140 supply zone might keep the market sinking until the major trendline is reached again. The major trendline emerged on April 3, 2022. It began its course at the $0.70340 local high and kept resisting the bullish move until it got struck aggressively on November 9, 2022. From the local high, NZDUSD kept declining until the swing low of $0.60610 was reached. From the swing low, the price expanded upward to seek buy-side liquidity before resuming the downtrend.

The market currently shows a change of character to the downside. While the change in environment is yet to be confirmed, the market seems to be reacting toward the buy-side liquidity above the $0.64690 high. The bearish order block that formed the swing high is also currently preventing the NZDUSD price from rising further. Once the bearish order block successfully immerses NZDUSD into the liquidity pool below the $0.62310 price level, the bearish move will be confirmed.

Market Expectation

NZDUSD is currently reacting to a bullish order block on the four-hour chart. The price might head upward to grab the buy-side liquidity above $0.64090 before heading downward and flipping bearish.

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