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NZDUSD has retraced to the major zone at 0.6880. The bulls ascended to 0.7300 just before the opening of the previous year. The market started consolidating after the major zone at 0.7300 was reached. A false breakout above the zone was prominent during late February of 2021. The price dropped rapidly beneath the zone. The market retraced to the major zone to retest it for a selloff.
The market created a triple top beneath the zone. The reversal pattern led the daily candles to swoop beneath the moving averages in June 2021. The market retraced back to the Moving Average, which acted as resistance for the upward move. The Moving Average period eighty-nine crossed the Moving Average period two hundred from the top. This revealed that the market was already under the rule of the bears.
The market dived into the 0.6550 demand zone. It was the third touch on the trend line. The bulls utilized the opportunity to flood the market. The buying pressure pumped the price back to the supply zone at 0.6880. NZDUSD has retraced to the major zone. The Stochastic indicated that the mail was already oversold on the 28th of January. This confluence of the trend line and demand zone gave the bulls momentum to accelerate.
NZDUSD Short Trend Trend: Bullish
The four-hour chart is bullish. This is due to the bullish retracement back to the supply zone. The market rose above 0.6880 but dropped back. Afterwards, the market retraced to the major supply zone. The market has created a gap that is likely to fill up. The market is currently in an oversold region. This is likely to cause a retracement before the market drops further. The zone at 0.6550 is currently in sight for the bears.
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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.
