NZDUSD Exploits Trendline Liquidity

Market Analysis: June 26

NZDUSD experienced a sharp and rapid price displacement against the prevailing bullish trendline. This abrupt move tapped into the rich liquidity concentrated along the ascending trendline, where a cluster of large orders had accumulated. With that liquidity swept, the pair appears poised to resume its movement in alignment with the original bullish trajectory.

NZDUSD Key Levels

Demand Levels: 0.5850, 0.5610, 0.5510
Supply Levels: 0.6110, 0.6340, 0.6520

NZDUSD Long-term Trend: Bullish

After a seamless ascent from the 0.5510 demand level, NZDUSD climbed past 0.5850 before losing momentum. This slowdown led to the formation of a double top pattern, which triggered a pullback to retest the 0.5850 support.

From there, the pair slowly advanced back to the 0.6110 resistance, supported by a bullish trendline clearly visible on the 4-hour chart. However, a sudden reversal occurred, dragging the price close to 0.5850 once again. This move was met with a strong rejection candle, suggesting the return of bullish pressure. Notably, the Stochastic indicator briefly dipped into the oversold region before swiftly recovering, signalling a deceptive liquidity grab below the trendline support.

NZDUSD Short-term Trend: Bullish

NZDUSD has now risen above the 9 and 21-period Moving Averages, reinforcing the likelihood of a bullish continuation. The price is nearing the resistance level at 0.6110, with bullish momentum gaining traction.

 

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