NZDUSD Remains In The Discount Zone As Price Struggles To Break Upward

NZDUSD Analysis: Market Remains In The Discount Zone As Price Struggles To Break Upward

NZDUSD remains in the discount zone as the price struggles to break upward. The market had a major downward fall after the buy-side liquidity grap over the $0.63900 high. Until the RSI (Relative Strength Index) reached the 30.0 level from the $0.64120 swing high, the price seldom saw a major retracement. The market appears to be in the grasp of the bears as the price keeps attempting to jolt upward.

NZDUSD Significant Zones
Demand Zones: $0.57090, $0.56010
Supply Zones: $0.60840, $0.65380

NZDUSD fell to $0.60840 at a resistance level of $0.65380, with a corrective occurring around $0.63900 in May 2023. As a high was established at $0.6390, establishing a liquidity pool, the market structure shifted. After rising from the last support level of $0.60840, the NZDUSD exchange rate was trading between $0.60840 and $0.63900. After the equal highs at $0.63800 were invalidated, the RSI indicated an overbought state, which led to a drop and the onset of bearish momentum. Diagonal support to the upward served as the sponsor for the bullish expansion that followed the discount zone in June 2023.

However, the NZDUSD tumbled down, successfully breaching the diagonal support, as a result of the selling pressure from the $0.64120. On the daily chart, the market’s current trading range spans the price ranges of $0.64120 and $0.58590. NZDUSD recovered into a bullish order block at the discount zone after a buy-side liquidity grab above the $0.60150 swing high. As the price consolidates near the discount zone, it seems the bullish order block is mitigating the selling pressure.

Market Expectation

After reaching $0.58590 in September, the NZDUSD made a positive expansion on the four-hour chart. However, the price recovered from a Fair Value Gap at the premium zone, breaking the diagonal support supporting the market’s bullishness. The bears seem to have made a comeback, and NZDUSD will probably keep falling for a while.