NZDUSD Plunges From an Institutional Candle

NZDUSD price took off for the moon from the 0.5570 demand level. The up thrust from the demand level in October was characterized by a steep slope. The price escaped from the oversold region to the supply level of 0.6500. The bearish reversal was finally established at the inception of February with a bombshell aimed at the 0.6500 resistance level. The price has dived after the retest of the institutional candle of 0.6350 to aim for 0.6090.

Demand Zone: 0.6090, 0.5770, 0.5570

Supply Zone: 0.6350, 0.6500, 0.6700

 The Stochastic has rested in the overbought region long since the 16th of January. The bearish displacement in February was triggered by a test of the upper Band of the Bollinger. The impulsive motion deposited a fair value in its descent. A bearish wedge guided the daily candles to the 0.6090 support level.

 The Buyers tried to regain control with a bullish breakout of the wedge. The ascent was not able to push through the 0.6350 resistance level. The Stochastic was overbought as the test of the resistance level in April. The market pulled back after a decent to hammer the Bearish institutional candle. This fostered the plunge in the market to 0.6230.

The downtrend has resumed on the daily and 4-hour charts. The Bears have the next support level of 0.6090 in view.

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