NZDUSD Aims for 0.57600 Level Amidst Persistent Downtrend

Market Analysis – April 24

NZDUSD has remained entrenched in a downward trajectory since establishing a significant peak in early January 2023. Its focal point is now fixed on the critical demand level at 0.57600. This unwavering descent continues unabated, demonstrating resilience as it steadfastly targets the 0.57600 demand level.

Key Levels for NZDUSD

Demand Zones: 0.59000, 0.57600
Supply Zones: 0.60620, 0.62130

Long-Term Trend for NZDUSD: Bearish

The prolonged downtrend saw a momentary pause. NZDUSD consolidated within the range of 0.60620 to 0.62130 before ultimately breaching below the 0.62130 level in late May 2024. Subsequent to this breach, the price retraced to test this level, which then transitioned into a formidable resistance point, catalyzing further bearish momentum.

The rejection from the 0.62130 zone precipitated the formation of a new break in the market structure. It caused a puncture in the 0.59000 demand zone. However, the resilience of the price prevented a complete breach of the 0.59000 level, as it offered staunch resistance, prompting a retracement. This pullback is anticipated to converge towards the order block, facilitating liquidity removal along its trajectory and potentially serving as a launching pad for continued downward movement. The current positioning of the Moving Average corroborates this bearish trend, as the price remains below its threshold.

Short-Term Trend for NZDUSD: Bullish

In contrast, the short-term outlook for NZDUSD exhibits a bullish bias, with a potential pullback anticipated to converge towards the order block. Furthermore, analysis of the 4-hour moving average signals a bullish trajectory. The current price is positioned above its mark. However, the departure of the Relative Strength Index from the overbought region is worth noting, prompting vigilance as the price is expected to encounter resistance at the order block, potentially inducing a rejection.

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