NZDUSD Sellers Storm The Market As Price Enters Premium Array

NZDUSD Analysis: Sellers Storm Market As Price Enters Premium Range

NZDUSD sellers storm the market as the price enters a premium range. Since October last year, the bulls have been predominantly in control of the market. Due to the enormous buying pressure, prices rallied without much correction until the daily bearish order block was reached.

NZDUSD Significant Zones
Demand Zones: 0.61560, 0.55120
Supply Zones: 0.65760, 0.70340

On October 11, 2022, NZDUSD made a bounce off the major support at the 0.55120 price level and flipped bullishly. The support at the 0.55120 price level is currently the lower boundary of the market’s trading range. Before the bounce off the 0.55120 support, the old high was created at the 0.58140 price level. This price level was later invalidated as the price flipped bullish and the market’s environment changed to the upside. The breaker block used to break the old low at the 0.55650 price level was later used to propel the price upward as it got retested.

The daily bearish order block that is causing the bearish sentiment in the market was formed on June 2, 2022. Following a grab of buy-side liquidity above the 0.63950 price level, NZDUSD ran through the sell-side liquidity below the 0.63090 price level. According to the Moving Average Convergence Divergence (MACD), the market was typically bearish for months until the Change of Character (CHOCH) in October 2022. As of now, the price seems to be heading down to execute buy orders in the discount arrays.

Market Expectation

The market’s structure is already shifting to the upside on the four-hour chart. NZDUSD is expected to make a retracement into either the breaker block or the consolidation zone before resuming the downtrend.