NZDUSD Confirms its Bearish Trend as the Previous Low Gets Invalidated

NZDUSD Analysis: The Market Confirms Its Bearish Trend as the Previous Low Gets Invalidated

NZDUSD confirms its bearish trend as the previous low at the 0.60840 price level gets invalidated. The daily chart has been quite choppy as the price keeps ranging within the previous trading range. However, the market is now bearish as a break of structure occurred at the $0.60840 price level.

NZDUSD Significant Zones
Demand Zones: 0.58700, 0.55120
Supply Zones: 0.63790, 0.65380

A few months before 2023 began, the market was undoubtedly bullish. According to the MA Cross, the market’s environment was in an uptrend as the buyers had no competitors. The price kept skyrocketing without making a notable correction until reaching premium. There were enough sell orders at the premium to flip the market’s environment to a bearish one. NZDUSD faced an overwhelming rival as it created its last two highs. More sellers awaited the upward flow at 0.65380 as it kept skyrocketing into the premium.

As NZDUSD reached the 0.65380 price level, the market was overwhelmed with sell orders. The bulls panicked and pulled out of the market to safeguard their profits. More sellers added sell positions in the market, and the price dived to change the market’s environment. However, following the Change of Character (CHOCH) around the 0.61000 price level, the market began to consolidate. The market ranged between the 0.65380 price level and the 0.60840 price level. After about two months in the consolidation phase, the bears finally stormed the market again. This brought about the break of structure (BOS), which confirms that the market is now bearish.

Market Expectation

The market was bearish on the four-hour chart as the price kept breaking all support levels to the downside. NZDUSD is expected to keep diving lower until it reaches major support at the 0.58700 price level.