NZDUSD Heads Upward For A Retracement As The Price Hits Equilibrium

NZDUSD Analysis: The Market Heads Upward For A Retracement As The Price Hits Equilibrium

NZDUSD heads upward for a retracement as the price hits equilibrium. With the $0.55120 and the $0.65380 major zones bounding the current trading range, the price reached equilibrium. The equilibrium level lies at the 50.0% Fibonacci level, at the $0.60030 price level.

NZDUSD Significant Zones

Demand Zones: $0.58700, $0.55120
Supply Zones: $0.63790, $0.65380

After a long period of the bullish trend, the bulls took profit and left the market at a premium. The price experienced a long-term rally from the $0.55120 support for several weeks until reaching the premium. On getting to the premium, the buying pressure decreased as most bulls began to pull out. Owing to the massive pullout, the explosive surge ended after the last high of the bullish trend formed. The last high was created on February 2, 2023, as the NZDUSD was overwhelmed by the selling pressure.

The market has been on the downside since the creation of the high. While the bearish move is not as massive as last year’s bullish move, NZDUSD is bearish. Following the breakout from the neckline, the price continued downward. A BOS (Break Of Structure) occurred to the downside, confirming the existence of the bearish environment. More bears kept storming the market until it reached equilibrium at $0.60030. The market is in a retracement phase as the price heads upward into the daily bearish order block. Despite the upward bias, a breakout at the short-term high of $0.63050 is needed to go bullish.

Market Expectation

On the four-hour chart, NZDUSD is in the early stages of an upward trend. Selling pressure will likely overwhelm the market once the retracement reaches the daily bearish order block.