NZDUSD Bears Target Major Demand Zone

Market Analysis – October 7

NZDUSD plummeted sharply into the key demand zone at 0.61250. The bearish momentum signals a potential reversal as the price rapidly descends, testing the limits of the current bullish structure. This demand zone at 0.61250 marks a critical swing low and may serve as the final support before the price ventures into invalidation territory.

NZDUSD Key Levels

Demand Levels: 0.61240, 0.60150, 0.58590
Supply Levels: 0.63700, 0.64630, 0.65650

NZDUSD Long-term Trend: Bullish

The sharp bearish delivery from the 0.63700 level reflects a robust momentum, highlighted by the “three black crows” candlestick pattern pushing into the demand zone. With no inefficiencies present before the 0.61240 swing low, the current price path shows little resistance to further downward movement.

Both the 9- and 21-period Moving Averages have been surpassed on the downside, confirming a shift in trend direction. Additionally, the Hull Butterfly indicator indicates a drop to zero in bullish momentum, emphasizing the control sellers currently exert over the market.

NZDUSD Short-term Trend: Bullish

The rapid price delivery in the higher timeframe has limited retracement opportunities for pullback traders. However, the 4-hour chart offers a promising entry perspective, particularly after any breach of the 0.61240 demand zone. Leveraging bearish order blocks on this timeframe may enable safer entry points for forex signals, aligning well with the broader bearish undertone.