NZDUSD Market Is Preparing to Continue Its Trend Downward

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 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 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.