NZDUSD Market Keeps Breaking Its Swing Lows Downward

NZDUSD Analysis – August 7

NZDUSD market keeps breaking its swing lows downward. The bearish market began on November 12, 2021, when prices crossed the resistance at 0.7020 from the local high. Until this day, the market had been moving in a random motion. The random motion was a result of the needed correction for the resumption of the downward trend.

NZDUSD Major Levels

Resistance Levels: 0.7020, 0.6540
Support Levels: 0.5470, 0.6200

NZDUSD Long-Term Trend: Bearish

The break of the resistance at 0.7020 on November 12 resulted in an impulsive downtrend in the NZDUSD market. The market sank with improved momentum until the previous support at 0.6540 was reached. The last support was very repulsive as it rejected the prices and drove the market towards the resistance at 0.7020 on April 5, 2021.
With much more momentum, the resistance rejected the prices, sank the market through the previous support, and twice retested it. The MA Cross, after prices were rejected at the resistance of 0.7020 on April 5, 2021, confirmed that the market order flow is bearish.

 

When the market retested the level of 0.6540, the Stochastic RSI indicator indicated that the market was in an overbought region, therefore creating a need for the continuation of the downward trend as the previous support became a significant resistance to NZDUSD.
The market keeps sinking downward and forming lower highs and lower lows. Currently, the market is heading towards the high formed on the daily timeframe on June 16, 2022, before resuming its downward trend and taking the liquidity below the swing low created on July 14, 2022.

NZDUSD Short-term Trend: Bullish

In the four-hour timeframe, the NZDUSD market’s order flow appears bullish. The market is expected to remain bullish until the liquidity above the high formed on August 10 is taken out. A shift in market structure is expected to lead the market downward, with all significant supports being broken and possibly retested.

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