NZDUSD Bulls Give in to Selling Pressure

Market Analysis – July 2

NZDUSD bulls aggressively defended the demand zone of 0.6080 since early May. This intense contention among market participants caused the formation of a range between 0.6180 and 0.6080. However, the bears have seized control with a break below the support level of 0.6080.

NZDUSD Key Levels:

• Demand Levels: 0.6180, 0.6290, 0.6350
• Supply Levels: 0.6080, 0.6000, 0.5860

NZDUSD Long-term Trend: Bullish

The unwavering stance of the bulls at the 0.6080 demand zone led to market consolidation. During this period, the Relative Strength Index (RSI) signaled that the market was already oversold.

Additionally, the change in hue and repositioning of the Smoothed Heikin Ashi Candles above the daily candles indicated a weakening bullish trend. Shortly after this repositioning, the price finally broke below the 0.6080 demand level. The RSI has since taken on a negative slope, indicating a further price decline.

NZDUSD Short-term Trend: Bearish

On the lower timeframe, the market structure is also bearish. It is crucial to wait for the RSI on the lower timeframe to move into the overbought region to identify optimal trade entry points. This approach can help generate safe forex signals in a bearish market environment. The recent price action suggests that the NZDUSD bulls have succumbed to selling pressure, with the break below 0.6080 marking a significant shift in market dynamics.

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