NZDUSD Swerves Upward As Price Hits Demand Zone At 0.61610

NZDUSD Analysis: Market Swerves Upward As Price Hits Demand Zone At 0.61610

NZDUSD swerves upward as the price hits the demand zone at 0.61610. The market was already in a bullish range before the bounce off the 0.61610 demand zone. The price is likely to remain bullish after the invalidation of the short-term high of 0.63150.

 NZDUSD Significant Zones

Demand Zones: 0.61610, 0.60850

Supply Zones: 0.63820, 0.65380

The 0.65380 resistance and the 0.60850 support have been the market’s trading range for a long time. However, throughout mid-September, the whole of October, and mid-November, NZDUSD was outside this trading range. In August, a price delivery to the downside occurred after a rally from the 0.65380 demand level. This price delivery to the downside was the cause of the market’s decline out of the trading range. But the trading range was returned as the bullish marubozu candlesticks delivered prices upward. 

The uptrend continued with impressive momentum until breaching 0.63820 resistance. The bullish momentum weakened due to the selling pressure at the 0.63820 resistance. However, following a short retracement, the uptrend continued until hitting the 0.65380 supply zone. The influx of sell orders at this supply zone caused a massive crash to the downside. It led to a change of character on the downside. The downtrend ended in March 2023 as the price bounced off the 0.60850 demand zone. The order flow of NZDUSD is now bullish, and the price might keep moving upward until reaching the premium.

Market Expectation

Following the bounce off the 0.61610 demand level, the price rallied upward. A return to the four-hour bullish order block has caused another surge to the upside. NZDUSD is likely to continue rallying until it reaches the premium.