NZDUSD Analysis: Sellers Await An Upward Price Delivery Into A Premium Array
NZDUSD sellers await an upward price delivery into a premium array. The price seems to be in a consolidation phase. The consolidation phase is currently bounded by the 0.62760 price level. There is buying pressure at 0.61560. This buying pressure caused a decrease in momentum during the downward flow of prices.
NZDUSD Significant Zones
Demand Zones: 0.61560, 0.55120
Supply Zones: 0.65380, 0.70340
Before the emergence of the downward trend, which began on February 2, 2023, the last downward trend was between August and October 2022. According to the Moving Average, the market flipped bullish after a rebuff at the 0.55120 price level. As a result of the rebuff and the market structure shift, NZDUSD made a massive expansion to the upside. The bullish trend continued as prices barely retraced into the discount array. In favor of the NZDUSD sellers, after the price surged above the 0.61560 level, most buyers exited the market. This was because the price was approaching the 0.65380 supply zone.
On November 28, 2022, a retest was made at the 0.61560 price level. This retest further propelled the expansion of the price to the upside. Before reaching the 0.65380 supply zone, NZDUSD retraced into the bullish order block before surging upward on January 6, 2023. Owing to the huge selling pressure at the 0.65380 supply zone, the price sank deeply into the 0.61560 demand zone. During the massive crash, a Fair Value Gap (FVG) was created on February 3, 2023. The FVG is likely to be the next point of interest for the sellers since it is nested in the premium zone.
Since the occurrence of the failure swing, more NZDUSD sellers have been exiting the market. Following the invalidation of the double top, the price is expected to either react at the four-hour bullish order block or the FVG. An aggressive expansion to the upside is likely to happen after this reaction.
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