NZDUSD Sellers Temporarily Dominate The Market As Price Sinks Into Discount

NZDUSD Analysis – Sellers Temporarily Dominate The Market As Price Sinks Into Discount

NZDUSD sellers temporarily dominate the market as price sinks into discount. The rebuff at the major trendline and the 0.63790 resistance have changed the directional bias to the downside. Alongside the Moving Average Convergence Divergence (MACD), the price fell significantly after the rebuff.

NZDUSD Significant Zones

Demand Zones: 0.60960, 0.55120

Supply Zones: 0.63790, 0.65380

The major trendline emerged on the second trading day of the year 2023. This was a result of the conclusion of the previous market trend. The last market trend was bullish, which rose from the 0.55120 demand level. The upward trend became obvious as the MA Cross signaled buy. This was revealed as the 18 MA crossed the 40 MA to the upside. During the aggressive expansion, the previous resistance at 0.60960 was invalidated. The upward trend continued unresisted until the price entered the 0.63790 supply zone.

The price entered the 0.63790 supply zone, and buying pressure was neutralized. To break this buying pressure, more sellers stormed the market at the 0.63790 supply zone. A swing low formed at the 0.61910 price level, after which the local high of 0.65380 formed. NZDUSD crashed massively in favor of the bears, causing a change of character downward. The downward cross of the Moving Average Convergence Divergence (MACD) through the zero line shows that the market’s environment is bearish.

Market Expectation

The trading range of NZDUSD on the four-hour chart is defined by the 0.63790 and 0.61820 price levels. Owing to the change of character to the downside, the price will continue downward.