NZDUSD Retests Key Zone After a Break in Market Structure

NZDUSD key zones:
Demand: 0.69500, 0.71000
Supply: 0.74500, 0.72500

NZDUSD reached its yearly highest at 0.74600 on the 25th of February after which the price dropped to a support level at 0.71000. Price bounced higher before collapsing with a huge bearish candle to break the market structure into lower prices on the 23rd of March. Price simultaneously broke the bullish trend line and dropped further into a support level at 0.69500 where the price regained the energy to drive higher. The support level was broken through without much effort on the 14th of April. Price reached into a major key zone at 0.72500.

NZDUSD Price Anticipation
As price reached the previous resistance level, it reacted and drop lower. The wick of the candle on the 29th of April retested the bullish trend line below at the 0.72500 resistance level to reach for lower prices. This has propelled the price to shoot lower towards the next support zone at 0.71000.

The Parabolic SAR has formed a single point above the last bearish candle on the daily chart just above the key zone at 0.72500 to show a price drop.

The MACD (Moving Average Convergence Divergence) histogram bars have also continuously reduced in size on the daily chart showing price drop as it reaches towards the negative side. The lines on the MACD have touched each other on the daily chart at the upper side of the MACD signifying a change in direction to lower prices.

The Parabolic SAR has shown multiple points above the candles since price reached the key zone at 0.72500 on the 4-hour chart.

On the 4-hour chart, the MACD (Moving Average Convergence Divergence) lines are already on the negative side showing price bearish run. The retest on the key zone at 0.72500 prevented the price from rising higher and has propelled the price towards the next support zone at 0.71000.

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