NZDUSD Bears Are Driving the Market Into a Major Demand Zone

NZDUSD Analysis – July 17

NZDUSD bears are driving the market into a major demand zone. For several months, the market has been in a downtrend along the daily timeline. The current downtrend began a few weeks ago due to the breakout below the previous support level at 0.6570.

NZDUSD Major Zones

Resistance levels: 0.6400, 0.6570
Support levels: 0.5920, 0.5500

NZDUSD Long-Term Trend: Bullish

The NZDUSD market has been notably bearish since the market trend change a few months ago. The swing highs touching the daily timeframe trendline at overbought regions of the Relative Strength Index (RSI) confirmed the downtrend. As the market continued to fall towards the resistance level at 0.5920, with lower lows and lower highs being formed, NZDUSD had a successful breakout through the previous support at 0.6400.

When the RSI enters the oversold territory, the market does react by correcting itself upward. The Moving Averages (MA) Cross confirms the current trend of the market. The red MA crossing the blue MA downward indicates that the market is currently in a downtrend, and it appears to be doing so to close the Fair Value Gap (FVG) that has since been formed in May 2020.

NZDUSD Short Term Trend: Bullish

The NZDUSD market had been respecting the four-hour timeframe trendline until recently when a breakout occurred. For the time being, a true breakout at the four-hour previous support level of 0.6200 is expected to keep the uptrend going. As the market struggles to approach the demand zone at 0.5920, a trend change between the 0.6000 and 0.5920 demand zone is possible.

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