NZDUSD Analysis – The Price Gets Upset by the Selling Pressure Around the Supply Zone
NZDUSD gets overwhelmed by the selling pressure around the supply zone at the 0.6470 price level. In the past few days, the market has been rallying in fractals. NZDUSD buyers appear to be extremely bullish on the NZDUSD. However, the market’s overall trend, especially on the higher time frames, is bearish.
NZDUSD Significant Zones
Demand Zones: 0.5870, 0.5510
Supply Zones: 0.6470, 0.7030
Algorithmically, before the bearish order block was reached, the price was rallying without invalidating any of the previous daily lows. In response to the rebuff at the 0.5510 demand zone, price expanded upward, thereby resulting in a bullish impression according to the MA Cross indicator. Typically, before the demand zone was reached, the NZDUSD sellers were totally in control of the market. The price was declining, though, to a trendline that was acting as diagonal support. This diagonal support emerged on May 13, 2022.
The downward flow of prices in May and June was the reaction to an order block that was created on January 31st, 2022. Ever since the reaction toward the order block, the price has remained below the 0.6470 price level. Early last month, the price mitigated an order block that was created during a downward delivery on October 6, 2022. Due to the reaction toward the mitigation order block, NZDUSD rallied for days until the oversold region reached the 0.6470 supply zone.
On the four-hour chart, the MA Cross has signaled a sale. More NZDUSD sellers are expected to storm the market now, thereby breaking the four-hour diagonal support to the downside. However, should the daily bullish order block refuse to reverse the price’s movement, NZDUSD might continue its bearish move for a long time.
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