NZDUSD Analysis: The Price Forms a Higher Low While Order Flow Remains Bullish
NZDUSD forms a higher low as order flow remains bullish. At the bullish order block just above the significant area at the 0.61560 price level, the price keeps accumulating as NZDUSD prepares to rally. For as long as the bullish order block is not invalidated and the demand zone of the 0.61560 price level remains intact, the market’s order flow should remain bullish.
NZDUSD Significant Zones
Demand Zones: 0.55120, 0.61560
Supply Zones: 0.65760, 0.70340
On the daily chart, the market’s direction bias is bullish. While the NZDUSD sellers await the price to enter the premium zone, the price might have to react at the daily bullish order block first before surrendering to the selling pressure at the premium. Additionally, the relatively equal highs at the 0.65140 price might also be invalidated to grab buy-side liquidity. However, should the bullish order block be invalidated, the price will likely mitigate the order block and get flipped to the downside.
A markup occurred in September 2022 alongside a rising trendline acting as a diagonal support. The markup was due to the execution of the accumulated buy orders at the 0.55120 price level. Before the markup, NZDUSD was in a typical downtrend as the price declined in fractals. The downtrend could be traced to the formation of the swing high at the 0.7650 price level. This swing high marked last year’s high in the first quarter of 2022.
The Relative Strength Index (RSI) indicates that the market is currently in an oversold region. This indication is consistent with the price’s direction bias from the bullish order block. NZDUSD is expected to dive deeper into the refined bullish order block and break the weak high at the 0.63900 price level.
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