Market Analysis – May 8
NZDUSD shows a predominantly bearish trend, indicating a higher presence of sellers compared to buyers. Price is currently experiencing a minor pullback, suggesting a possible continuation of the overall bearish trend.
NZDUSD Significant Zones
Resistance Levels: 0.60800, 0.62050
Support Levels: 0.59550, 0.58400
NZDUSD experienced a noticeable shift in market structure followed by the bullish trend shifting to a bearish trend that emerged around mid-January 2024. This significant change catalyzed a downward movement in price, resulting in a bearish momentum that breached the established demand level at 0.59550. Despite this bearish indication, the market did not perpetuate its descent past the 0.58400 mark. Instead, a failed low was formed, suggesting a potential for a potential bullish retracement.
The ensuing retracement encountered a bearish order block, which swiftly rejected price advances indicated by a large candle wick, thus supporting the anticipation of a resumption in the overall bearish trend. The price is anticipated to continue its downward trend, breaking through the liquidity at the 0.58400 level and eventually surpassing it.
The daily Relative Strength Index indicates bearish prices as the market hovers around the 70.0 overbought region. On the 4-hour timeframe, the price is in the 30.0 overbought zone, suggesting a short-term bullish trend. However, this short-term bullish momentum is expected to retest the order block with 0.60800 acting as a key support level.
Market Expectation
A significant bearish trend is expected as the price rejects the bearish order block. Price is likely to retest the order block, with the retest showing a rejection wick off the bearish order block.
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