Market Analysis – NZDUSD Sellers Seek Deep Penetration
Kiwi face setbacks as bullish pressure declines. The Kiwi, represented by the NZDUSD pair, has encountered a setback in the face of declining bullish pressure. The bulls have loosened their grip, allowing sellers to hit hard and initiate a reversal in the market dynamics. This reversal has disrupted the previously anticipated bullish opportunities for early 2024.
Kiwi Key Levels
Resistance Levels: 0.64000, 0.62600
Support Levels: 0.60800, 0.58500
For several months, the bulls had maintained a determined stance, keeping a straight face in the market. Buyers of NZDUSD found solid redemption after a price reversal at the significant level of 0.57710. From that point onward, the bulls displayed their aggressive side, propelling the price higher throughout the previous year.
With their intensity, the bulls managed to fight through several key zones. However, they faced rejection around the significant level of 0.64000. At this crucial level, buyers encountered difficulties and were unable to apply further pressure. The emergence of sell pressure indicates that buyers will need a comeback strategy to initiate a breakout.
As we enter the new year, sellers have gained momentum, leading to a reversal in the market. The bears have orchestrated a U-turn, driving the price down to the significant level of 0.62600. Consequently, the Kiwi could weaken for a period, allowing the US dollar to gain strength once again.
Nonetheless, traders are still keeping an eye out for potential bullish opportunities in 2024. The momentum indicator points towards a decline, suggesting that buyers are losing their touch in the market. It’s therefore crucial for buyers to anticipate a rebound and regain their presence on the scene.
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