NZDUSD Sellers Retreat as Price Nears $0.58400 Demand Zone

NZDUSD Analysis: Sellers Exit the Market as Price Approaches $0.58400 Demand Zone

NZDUSD sellers exit the market as the price approaches the $0.58400 demand zone. Since the $0.65380 high formed on February 2, 2023, NZDUSD has been declining in fractals. However, the RSI has never crossed below the 30.0 level until recently. This implies that a possible retracement or a total reversal to the upside is highly probable from here.

NZDUSD Significant Zones
Demand Zones: $0.58400, $0.55120
Supply Zones: $0.64110, $0.6560

Following the bullish growth that resulted in prices reaching the premium level last year, the market has shifted towards a bearish trend. The bullish trend ended as the year 2023 began. More NZDUSD buyers exited the market, causing a steep dive. The downtrend started as the price created a major swing high at $0.65380. With an astonishing displacement, NZDUSD declined, forming a low around the $0.61000 psychological level.

Following the formation of the low, NZDUSD rallied in fractals. The rally continued until another high formed at the price level of a previous high. After reaching an equal high of $0.63880, the market continued its downward trend and eventually hit a significant low of $0.59850. The NZDUSD buyers stormed the market and instigated a rally in price beyond the equal high of $0.63880. The rally encountered selling pressure at the $0.64110 resistance. Due to the selling pressure, the market’s downtrend resumed as the market became oversold.

Market Expectation

The four-hour chart experienced an upward surge as the RSI (Relative Strength Index) showed a bullish divergence. NZDUSD will likely continue rising after the breakout from the diagonal resistance up until the $0.63140 high is invalidated.