NZDUSD Finds Support on Mitigation Block

Market Analysis – July 10

NZDUSD price ascent paused at the resistance level of 0.6180. The market structure turned bearish as the price declined, seeking support at the breaker block of 0.6050. However, the market has recently shown bullish signs, indicating a potential continued uptrend.

NZDUSD Key Levels

• Demand Levels: 0.6050, 0.5990, 0.5860
• Supply Levels: 0.6180, 0.6290, 0.6360

NZDUSD Long-Term Trend: Bullish

The Bollinger Bands revealed that the price was overbought at the resistance level of 0.6180. The Hull Butterfly indicator indicated a decline in bullish momentum upon reaching this resistance zone. This suggests that the market was unable to sustain the previous upward momentum, leading to a temporary pullback.

As the price dipped into the breaker block of 0.6050, a positive shift in market structure was observed. This key level acted as a strong support, halting the decline and providing a foundation for the next bullish move. The Hull Butterfly Indicator now shows a complete depreciation of bearish momentum, suggesting a renewed bullish outlook. This shift in momentum could potentially lead to a significant upward movement if the price manages to break above the resistance levels.

NZDUSD Short-Term Trend: Bullish

On the 4-hour chart, the market structure remains bullish, though the price is currently sinking toward the supporting band of the Bollinger Bands. This dip is expected to foster a price explosion against the resistance level of 0.6180, potentially leading to further gains in the near term. The supporting band of the Bollinger Bands often acts as a dynamic support level, which can absorb selling pressure and encourage a rebound.

Additionally, the price action around the 0.6050 level will be crucial in determining the next move. If the price manages to hold above this level and gain upward momentum, it could retest the 0.6180 resistance and even aim for higher targets such as 0.6290 and 0.6360.

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