NZDUSD Breaker Block Halts Bearish Pullback

NZDUSD recently experienced a very wild reversal. In one single displacement, the market rose by almost 10% without a single pullback, enforcing a bullish structural shift. The price has finally experienced a pullback afterwards, which has halted at the test of a breaker block.

Demand Levels: 0.5850, 0.5740, 0.5550

Supply Levels: 0.6020, 0.6220, 0.6350

A bullish surge emerged from the demand level of 0.5550, surpassing the swing high at 0.5850. The key level of 0.5850 has played the role of support multiple times in the previous year.

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Following the BOS (Break of Structure) above 0.5850, the buyers got exhausted, leading to a slowdown in the ascent. The Moving Average period 9 caught up with the price to show the slowdown. Eventually, a swing high formed at 0.6020, starting a pullback.

The pullback on the daily chart culminated at the breaker block formed at 0.5850 on the higher timeframe. The Stochastic is also oversold on the daily chart; hence, a bullish resumption is expected. This has led to a bullish shift on the daily chart. A symmetrical triangle has formed above 0.5850. A bullish breakout is expected to lead to 0.6020 on the daily chart.