NZDUSD Takes A Steep Dive As It Breaks $0.59850 Support

NZDUSD Analysis: Price Takes A Steep Dive As It Breaks $0.59850 Support

NZDUSD takes a steep dive as it breaks $0.59850 support. The market transitioned towards a bearish disposition following its confrontation with resistance at $0.65380. Subsequently, NZDUSD systematically descended until it reached a previous support threshold of $0.59850. It held resolutely at this valuation until a buy-side liquidity sweep eventuated on September 1, 2023.

NZDUSD Significant Zones
Demand Zones: $0.57090, $0.54320
Supply Zones: $0.59850, $0.65380

Following the peak at $0.65380, NZDUSD began a noticeable downtrend. Afterward, it went through smaller downward movements until it hit the previous support level of $0.59850. Once it dipped below $0.59850, it encountered some resistance around $0.63890 due to similar price highs. The trading range for NZDUSD was between the high of $0.65380 and the low of $0.59850. The $0.59850 level acted as a turning point, breaking below the previous low at $0.60840 and leading to a sudden price surge.

However, when NZDUSD reached the 0.79 Fibonacci retracement level of its trading range, the downtrend resumed. This decline gained momentum as it broke crucial support levels, attracting more bearish sentiment. Eventually, a successful breakout occurred as a result of a selling spree, rendering the previous $0.59850 support ineffective. According to the MACD (Moving Average Convergence Divergence), the market still seems bearish.

Market Expectation

The price dropped to invalidate the previous low of $0.58860 after an increase in selling activity at the previous high of $0.59970. NZDUSD will likely continue to decline, with the potential for a temporary rebound before a more substantial drop.