NZDUSD Sellers Get Prepared As The Market Seeks Buy-Side Liquidity

NZDUSD Analysis: Sellers Get Prepared As The Market Seeks Buy-Side Liquidity

NZDUSD sellers get prepared as the market seeks buy-side liquidity. The market remains bullish even after the old low above 0.61620 was invalidated on December 15, 2022. Except that the 0.61620 support gets broken before the 0.65760 resistance, the market's order flow should remain bullish.

NZDUSD Significant Zones

Demand Zones: 0.61620, 0.55120
Supply Zones: 0.70340, 0.65760

The bullish phase was coming from the 0.55120 demand level. It was signaled when the Relative Strength Index (RSI) indicated a bullish divergence plus an oversold market in October 2022. Due to the signals given by the RSI, the market rallied and ended up changing its environment on October 28, 2022, invalidating an old high. The previous environment was bearish and typically dominated by NZDUSD sellers. This bearish environment has existed for a very long time, as the price has continued to fall rapidly from the crest.

On June 14, 2022, a double bottom was created; this double bottom was later used to engineer liquidity as prices continued heading downward. On August 10, 2022, the price sought buy-side liquidity above a short-term high, after which the bearish order flow was resumed with greater momentum. On September 13, 2022, a displacement was created to the downside, indicating the NZDUSD sellers' dominance at that time. The market began a new upward impulse at 0.55120, as previous points of interest (POIs) began to cause the price to retrace rather than reverse completely.

Market Expectation

On the four-hour chart, the market remains in a range defined by the 0.65140 and 0.61620 price levels. Following the bounce off the refined bullish order block, the price keeps heading upward to grab buy-side liquidity above the 0.65140 price level. After the liquidity grab, NZDUSD sellers might be opportune to take the market downward. This is expected as the price runs through the sell-side liquidity below the previous low of 0.63040.