NZDUSD Analysis: Price Keeps Heading South As Buyers Exit The Premium Zone
NZDUSD keeps heading south as buyers exit the premium zone. The rally towards the end of 2022 has caused doubts in the market for NZDUSD buyers. The rally is likely to be the last phase until reaching equilibrium.
NZDUSD Significant Zones
Demand Zones: 0.60960, 0.55650
Supply Zones: 0.63790, 0.65380
Before the exuberant rally, which lasted into the end of 2022, an exuberant decline had happened. The last two lows occurred as buy orders accumulated, marking the end of the dip. The 0.55650 support was breached in a bid to cause the creation of the one-year low. Before the one-year low formed at the 0.55120 price level, a swing high had formed at 0.58140. The swing high was invalidated as NZDUSD began the markup phase into the premium zone.
As the markup continued, NZDUSD invalidated the major resistance level until reaching the 0.65140 price level. During the markup into the premium zone, a short-term low of 0.61560 formed. The price began to show signs of weakness after reaching the 0.65140 level. However, the buying pressure propelled the price into the 0.65380 supply zone. After reaching the 0.65380 supply zone, the price declined as it broke the weak supports into the 0.60960 demand zone.
On the four-hour chart, NZDUSD is within the trading range of 0.63790 and 0.61120 price levels. Price enters into the premium zone, most likely to grab the buy-side liquidity above 0.62260. Following the buy-side liquidity grab, NZDUSD is expected to keep heading south.
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