NZDUSD Experiences Correction within Bearish Trend

Market Analysis – March 29

The NZDUSD pair has undergone a corrective phase within its overarching bearish trend, characterized by a persistent formation of lower lows since the market’s pivot at 0.6070. Throughout the year thus far, the William Alligator indicator has consistently acted as a barrier to price advancement, compelling downward pressure on demand levels.

NZDUSD  Key Levels

Demand Levels: 0.5880, 0.5800, 0.5730
Supply Levels: 0.6070, 0.6200, 0.6409

NZDUSD Long-Term Trend: Bearish

Following a test of the 0.5880 demand level, the price trajectory has exhibited an upward trend. This ascent found stabilization along both the trendline and the demand level, instigating a temporary cessation in the downward momentum, characterized by the formation of a double bottom pattern.

The convergence of the price with the oversold territory of the Stochastic oscillator at the demand level further reinforced the notion of a potential reversal. Nonetheless, the current upward movement appears transitory in the context of the broader market trend, reflecting a corrective pullback within the prevailing bearish trajectory. The retention of the previous notable high on the daily chart underscores the enduring bearish sentiment.

NZDUSD Short-Term Trend: Bullish

Over the 4-hour timeframe, the market sentiment tilts bullish, evidenced by the consistent formation of higher highs and lows subsequent to the test of the 0.5880 demand level. It is imperative to employ a comprehensive top-down analysis to generate the best forex signals. Consequently, while long positions may be considered, prudent management is advised given the persistent bearish sentiment across higher timeframes. Anticipation persists for the breach of the 0.5880 demand level upon the resumption of downward price movement.