NZDUSD Price Action Reveals Reversal Signs

NZDUSD market direction turned bearish after the MACD (Moving Averages Convergence and Divergence) indicator signaled an oversold market in late July. The bullish order block failed to hold to establish the shift in the market structure.

Demand Levels: 0.5990, 0.5890, 0.5740

Supply Levels: 0.6130, 0.6270, 0.6410

Shortly after the MACD histogram bars were projected in August, the Daily Moving Averages cross-confirmed a new downward trend. The Moving Averages hovered above the daily candles to reveal the selloff.

Shortly after the low of 0.5990 was swept, the steep NZDUSD trend transformed into a consolidation. The MACD currently points to a reversal with the cross of the lines in the oversold region. The daily candles are rising above the moving Averages which is a sign of a bullish reversal.

The market consolidation is obvious on the 4-hour chart. The market price has failed to successfully break out from the range guided by the 0.5990 resistance line and the 0.5890 demand line. The Moving Averages have also been moving sideways on the 4-hour chart to reveal the consolidation. The breakout below the range might continue the sell trend. If the Bulls are successful, a new bullish trend might be established.

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