NZDUSD Analysis – Price Retests Below Its Previous Resistance Level
NZDUSD retests the price level of 0.680. This shows the market is likely to move into a new range. The previous resistance level at 0.680 defended the price from going long during September, as seen on the daily chart. It eventually gave way and the price skyrocketed to the moon. The price formed a key zone between 0.730 and 0.710. The market was held in consolidation till February when the price sank below 0.710.
NZDUSD Key Zones
Resistance level: 0.730, 0.710
Supply levels: 0.650, 0.680
The bears eventually drove the price up back to 0.730 immediately, where it was heavily defended once again. The market was held in another consolidation because the buyers weren't willing to go below the 0.710 zone. However, they were too weak to hold the price, and eventually, the market crashed hard to 0.680. The New Zealand dollar became weaker against the dollar again. The price ranged between 0.650 and 0.710, which eventually became the new supply level.
The New Zealand dollar is still showing weakness as a retest below 0.680 is noticed. The market retests for the second time below the previous resistance level. Since the beginning of December, consolidation has been noticed at the 0.680 zone on the daily chart, showing NZD is likely to recover. The Parabolic SAR has formed its third dot below the last red daily candle, showing reversal signs.
On the four-hour chart, the steep, sloppy downward trend has now become very gentle. This is a sign that there are more buyers of the New Zealand Dollar compared to November 2021. The Stochastic on the four-hour chart correlates with the daily, showing the market is already oversold and is ready for buying. This is likely to push the price to 0.710. If the bulls do not recover, the market is likely to plunge further after the retest of 0.650.
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