NZDUSD Market Is Preparing to Continue Its Trend Downward

Updated:

NZDUSD Analysis – August 1

NZDUSD market is preparing to continue its trend downward. Immediately after the resistance level of 0.7330 was hit on February 22, 2021, a fake-out occurred, and the bears stormed the market. Before the bears completely dominated the market, NZDUSD had been rallying upward.


Market Major Levels

Resistance levels: 0.6530, 0.7330
Support Levels: 0.5480, 0.4890

NZDUSD Market Is Preparing to Continue Its Trend DownwardNZDUSD Long-Term Trend: Bearish

After prices hit the resistance levels, for some time, the market struggled to continue its trend in an upward direction. For more than a month, the market consolidated around the resistance level of 0.6530 before resuming its upward trend. After the resistance level at 0.7330 was hit, the bulls and the bears struggled to dominate the market. The market order flow changed from an uptrend to a downtrend as the market trended downward after the fake-out at the resistance level of 0.7330.

The bears succeeded in taking over the market from the local high and led the market towards the previous support at 0.6530. The bulls again took over the market but had only a short-lived aftereffect. After the bears stormed and dominated the market, the swing highs formed resulted from the indication of the Relative Strength Index (RSI), revealing that the market was in the overbought region. The break and retest of the previous support level of 0.6530 and the cross of the Moving Averages (MA) confirm that the market is in a downward trend.

NZDUSD Market Is Preparing to Continue Its Trend DownwardNZDUSD Short-Term Trend: Bullish

A change of character (CHOCH), or a shift in market structure, has occurred in the four-hour timeframe, and the market order flow now appears to be bullish. The market trend is expected to remain bullish until the 0.618 Fibonacci retracement level is reached and a CHOCH occurs as the four-hour timeframe flips bearish.

You can purchase Lucky Block here. Buy LBLOCK

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

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.