NZDUSD Market Trend Remains Bearish

NZDUSD Analysis – July 24

NZDUSD market trend remains bearish. Since early last year, the market has been in a downward trend. Prior to the beginning of this downtrend, the bulls were in control of the market. The bulls stormed the NZDUSD pair after an immediate rebuff at the local low of 0.5480, which is also a significant support in the market.

NZDUSD Market Major Zones

Demand Zone: 0.5925, 0.5480
Supply Zone: 0.6530, 0.7030

 

NZDUSD Long-term Trend: Bearish

The price reaction after it hit the demand zone of 0.5480 led more bulls into the market. The bulls kept the price rallying upward and broke every resistance for the next eight months. In the eighth month, after the resistance level of 0.7030 was broken, the bulls began to offload their sell positions until the bears finally took over the market and drove prices downward. The daily timeframe trendline indicates that NZDUSD market trend is currently downward.

The bears started their first impulsive move by crashing the market down towards the previous support at 0.6530, and prices reacted by correcting upward till the daily timeframe trendline was hit for the third time. The price hitting the daily timeframe trendline caused prices to decline further downward until the oversold region was reached, as revealed by the Relative Strength Index (RSI). The oversold indication made the price make an upward correction till the resistance level of 0.6530 was hit.

 

NZDUSD Short-term Trend: Bearish

On the four-hour timeframe, the market’s outlook appears bearish. Though prices seem to be forming higher lows and higher highs, this formation is expected to continue until the market enters an overbought region and clears the liquidity of the swing high below the resistance level at 0.6530. The overall outlook on the NZDUSD market is bearish. The market is expected to keep crashing downward until the demand zone at 0.5925 is reached.

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