NZDUSD Analysis: Buyers Influence Wane as the Price Moves Into the Supply Zone
NZDUSD buyers influence wane as the price enters the supply zone at 0.65290. The market has typically been on a bullish trend for days. This bullish phase was a result of the buying pressure in the demand zone of 0.55120. As the price approaches the 0.65290 supply zone, buying pressure tends to ease as NZDUSD buyers exit the market.
NZDUSD Significant Zones
Demand Zones: 0.60600, 0.55120
Supply Zones: 0.65290, 0.70340
The previous resistance at 0.60600 was invalidated due to the change in the market’s environment from the 0.55120 demand zone. On September 13, 2022, however, an order block was created as the price was delivered to the downside. This order block’s zone coincides with the previous supply zone at 0.60600, therefore exhibiting the characteristics of strong support. Throughout April this year, the NZD/USD exchange rate fluctuated within the 0.70340 and 0.65290 price levels.
The 0.65290 price level was strong enough to rebuff the price to the downside on June 1, 2022. The market has been in a downtrend on the daily chart since April 5, 2022. Coupled with the price’s reactions at the resistance levels of 0.70340 and 0.64290, NZDUSD keeps maintained a bearish impression until the Change of Character (CHOCH) on October 26, 2022. However, the bearish order block at the 0.65290 supply zone was used to reject the price’s upward movement in August 2022.
NZDUSD has been maintaining its bullishness on the four-hour chart since the change of character occurred. NZDUSD sellers are expected to storm the market with sell orders at 0.65290, causing a massive dive. This will cause a significant drop in the price, against what we have seen in the NZDUSD market recently.
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