NZDUSD Witnesses A Bearish Break-of-Structure

Price Analysis: The market witnesses a new bearish break of structure

NZDUSD witnesses a new bearish break-of-structure towards the demand level of 0.5550. A bearish reversal formed after the market reached liquidity, resting above the major high in August 2022. The fall in NZD/USD price has been lethargic due to the buyers’ will to push above 0.6680.

NZDUSD Key Levels
Demand Levels: 0.5650, 0.5550
Supply Levels: 0.6220, 0.6680

The market remained stiff after the price reached the August 2022 high. The first test of the bearish resistance trendline aided the sellers in shorting the market and injecting bearish pressure. With the second test of the bearish trendline in July, the buyers were displaced. A rapid fall in price was featured in August 2023.

The market witnessed a decent pullback after the impulsive price decline in September. Recently, the lows preceding the retracement have been swept to establish a new break-of-structure.

Market Expectation

The market is experiencing a free fall towards the demand zone of 0.5550. The Parabolic SAR (Stop and Reverse Indicator) points rests above the recent daily candles to support the price decline. The Stochastic indicator is oversold. Hence, a minor retracement towards a fair value gap on the current bearish swing is anticipated.