NZDUSD is disallowed at the 0.71560 key level from passing the transition zone to the upper half of its general consolidation zone. This, therefore, brings an end to the market rally that began on the 23 of August from the 0.68101 demand level. The market hit a sharp rejection after rising to reach 0.71560, and the price was forced to stay below the transition zone at 0.71240, from which it launched occasional trials to breakthrough. But after a while, the price eventually dropped.
Price ranges in the upper consolidation from 0.73200 to 0.71560 before a transition zone separates the lower consolidation zone at 0.70570 to 0.69510. Having fallen to the lower-ranging phase on the 15th of June 2021, the market has continued to range, but bears have regained the upper hand in the market. Eventually, it was sellers that tried to pull the price below the ranging zone. This caused the price to drop to 0.68101.
This, however, sparked a backlash from the buyers, who immediately embarked on a rally from there to pump the market to the upper ranging zone. However, the 0.71560 key level disallowed the price from moving upward. After 9 days of intense struggling, NZDUSD dropped. The market, on the other hand, found stability at 0.69910, where price has been attempting to rally again, but the market is currently only moving sideways.
NZDUSD Short Term Trend: Ranging
Having disallowed the price from dropping below it, the 0.69910 level now acts as a demand level to spark off a short-term ranging phase with the 0.70570 key level as resistance. Therefore, NZDUSD has continued to undulate through the zone. The market shows more potential to break downwards towards 0.69510 as the Parabolic Stop and Reverse indicator places more dots above the range than below it. The Moving Average Convergence Divergence lines have also crossed the zero mark and each other downward, accompanied by bearish bars.
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