NZDUSD Analysis: Buyers Accumulate Orders as Price Leaves the Supply Zone
NZDUSD buyers accumulate orders as the price leaves the supply zone. The latest low may be an intermediate low as the price surges quickly from the supply zone due to the purchasing push at the 0.615600 support. However, the market’s environment is still bearish on the daily chart.
NZDUSD Significant Zones
Demand Zones: 0.615600, 0.551200
Supply Zones: 0.653800, 0.703400
The order flow in the market was usually downward until the long-term bottom formed at the price level of 0.551200. A swing high occurred just below the 0.653800 price level two months before the formation of the long-term low. The market appears to react to the 0.615600 price level. The swing high formed in July 2022, when the price spiked upward, reacting to this 0.615600 price level. After more NZDUSD buyers left the market, the price returned to the 0.615600 level to break and retest it. In October 2022, the Moving Average shifted with the market’s structure, moving into an uptrend.
The price saw an unstoppable climb between October 10, 2022, and December 13, 2022, when buyers took over the market. On November 18, 2022, a bullish order block formed as the surge proceeded. The price response to the 0.615600 price level led to the formation of this bullish order block. The buying impulse rapidly decreased as 2022 ended, while the price managed to approach the 0.653800 supply zone. Buyers of the NZDUSD may once more ride the market to the upside as the price leaves the bullish order block.
Now, the four-hour chart of NZDUSD shows an impending upward trend. However, the market’s environment will continue to be on a downtrend until the 0.627600 swing high is invalidated. A massive rally is anticipated once the four-hour bullish order block is reached and the prior high is invalidated.
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