NZDUSD Analysis – Price Plummets to 0.67140 After Rejection at Resistance Level
NZDUSD plummets to the 0.67140 strong demand level after it suffers rejection at the 0.70490 supply zone. Price started at a confluence zone of its down trend line and the 0.65330 demand level. The price pushed strongly, breaking several key levels and the 0.67140 supply line. After that, NZDUSD kept rising till it got to 0.69460. At this point, the bulls got exhausted, and the market plummeted, falling back to 0.67140.
NZDUSD Major Levels
Supply Levels: 0.68000, 0.69460
Demand Levels: 0.65330, 0.67140
The 0.67140 price level is a significant psychological level for the NZDUSD market; it tends to either break or support the market structure. A major example of this can be seen in the performance of the market from the end of 2021 into the beginning of 2022. The bears were interrupted from a free flow downward for several days before continuous pressure made the level yield eventually.
There was less resistance at the psychological level, climbing back upwards at the end of February. Afterwards, the price kept rising till it was exhausted at 0.70490. This market then plummets below its uptrend line till it crashes into the 0.67140 level as support. Though the MA Cross (Moving Average) has crossed downward due to bullish weakness, the Stochastic lines are set to rise from deep in the oversold region.
The 4-hour chart seems to indicate a bullish rally. The price is taking a stronghold above the psychological level, and the price is now approaching the 0.68000 key level. The MA Cross, in this short time frame, has just made an upward cross. Meanwhile, the Stochastic Oscillator has risen into the overbought region. A retracement might follow before further upward movement towards 0.69460.
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