NZDUSD Analysis – 0.69400 Will Soon Give Way as Bears Mount Pressure
Bears mount pressure on the NZDUSD 0.69400 demand zone to go lower. Ever since the Kiwi attained the 0.74600 supply level on the 24th of February 2021, bears have been working hard to drag the market down. Price started a decline with a tweezer top candle formation. When the market fell to its uptrend line, it only took 10 trading days to breach the line and go lower.
NZDUSD Key Levels
Supply Levels: 0.71300, 0.73000, 0.74600
Demand Levels: 0.69400, 0.67800, 0.66000
After breaching the uptrend line, price kept falling and it took the 0.69400 support to keep it up. Bulls took over from there but met strong resistance below the trend line. With support from 0.71300, the market tested the resolve of the uptrend line twice and, after failing to find a way, bears continued their market plunge. Kiwi fell below 0.71300 and back to 0.69400. Like before, the demand level is keeping price up, but the bears keeping mounting pressure.
Sellers have forged the market into a descending triangle to put pressure on the 0.69400 demand level. There has indeed been a false break out on the 20th of July 2021. Also, bulls tried to snap out of the triangle unsuccessfully on the 6th of July. If the market keeps tapering down the descending triangle, the 0.69400 demand is destined to give way sooner or later. The MA period 20 (Moving Average) remains above the daily candles to show a downward movement.
Price has bounced off the upper border of the descending triangle to make a new lower high. The market is now falling again towards the 0.69400 demand.
The signal lines of the MACD (Moving Average Convergence Divergence) have crossed each other and are pointing downwards. Also, the histogram bars have switched from bullish to bearish. This all points to the current market falling towards the 0.69400 demand.
As the price keeps tapering down, the 0.69400 demand will eventually give way. The next demand level at 0.67800 will be the first point of call.
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