NZDUSD Bullish Trend Continues with Signs of Decreased Momentum

Market Analysis – June 7

NZDUSD is currently exhibiting a bullish market delivery. The price has successfully pushed above the resistance level of 0.6180. While the overall market structure remains bullish, recent price action and indicators on the daily chart suggest a decrease in momentum.

NZDUSD Key Levels

Demand Levels: 0.6080, 0.6000, 0.5860
Supply Levels: 0.6180, 0.6290, 0.6400

NZDUSD Long-Term Trend: Bullish

The Lorentizan Classification indicator, known for providing reliable forex signals, indicated a buy on May 3, 2024. Before this signal, the MACD (Moving Average Convergence Divergence) histogram had turned green and was gradually growing in size, signalling increasing momentum. Following these signals, the price successfully pushed above the resistance line on the daily chart.

However, since breaking the resistance level at 0.6180, the MACD has shown signs of declining momentum. The gap between the MACD line and the Signal line is narrowing, indicating a decrease in momentum. Similarly, the histogram bars are gradually diminishing in size, and their hue is fading gently.

NZDUSD Short-Term Trend: Bullish

The price has dipped into a bullish order block below 0.6180. Testing this bullish order block is expected to support the resumption of the upward trend. Traders should remain observant as declining momentum may eventually generate bearish forex signals. However, until there is a bearish shift in market structure, the bullish trend remains intact for long orders.

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