NZDUSD Bearish Trend Reverses 

Market Analysis – February 20

The NZDUSD bearish trend reverses as it fails to establish a lower low. The price created a lower low in late October 2023, which was followed by a structured break. The break in structure formed a breaker block, which was a potential entry point for the market.

NZDUSD Key Levels

Demand Zones: 0.60480, 0.58750

Supply Zones: 0.62010, 0.63400

NZDUSD Long-Term Trend: Bullish

The break of structure caused the price to trend bullish in a volatile manner. However, the bullish momentum encountered resistance at the 0.63400 supply level causing the price to crash.

As the price dropped, the 0.60480 demand along with the breaker block provided support. The price showed a tendency to rise at the trigger of the Breaker block leading to a failed low. The Relative Strength Index also indicates that the price is likely to reach the overbought region at 70.0.

NZDUSD Short-Term Trend: Bullish

The recent low on the 4-hour timeframe clearly shows that the price respected the demand level at 0.60400. The Moving Average suggests a bullish outlook, with the current market price above it. As the price continues to show a bullish tendency, there is anticipation for the breach of the 0.62010 level to bring about forex signals.

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