NZDUSD Analysis – Market Expands Upward As Price Hits Support Of The Bearish Channel
NZDUSD expands upward as the price hits support of the bearish channel. This downward trend began after NZDUSD reached its highest point of the year on February 2, 2023. Interestingly, the bearish trend has faced prolonged resistance, leading to an ongoing battle between the bullish and bearish forces. Notably, the bearish trend has encountered support for the third time since its inception.
NZDUSD Significant Zones
Demand Zones: $0.57090, $0.54320
Supply Zones: $0.60840, $0.65380
On January 5, 2023, the financial markets witnessed a notable uptrend, driving valuations higher. However, the optimism stemming from this surge gave way to a shift in the market’s direction, initiating a bearish trend in the NZDUSD pair. This downturn had its origins in the year’s peak of $0.65380, where the market initially dropped to $0.60840. Subsequently, a retracement occurred, leading to the formation of a double peak pattern, notably at $0.63790. This pattern triggered a sharp descent, breaching the neckline of the formation.
Following this decline, the market revisited the lower boundary of the bearish channel, marking a low point at $0.59840. However, a subsequent uptrend ensued, propelling the NZDUSD pair to approach a resistance level. This series of price movements highlights the dynamic nature of the currency pair’s trading behavior, with fluctuations influenced by both bullish and bearish forces. Currently, NZDUSD is in a discounted range and shows a bullish divergence, in line with the RSI (Relative Strength Index) readings.
The sentiment on the four-hour chart leans toward bearish. However, a closer look at the sell-side liquidity below the $0.58860 low point reveals a strong rebound from diagonal support. As it stands, NZDUSD is following an upward trajectory, possibly nullifying the $0.60150 pivotal point, which could change the prevailing market environment.
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