NZDUSD Price Crashes into a Demand Zone Through a Falling Wedge

The NZDUSD pair has experienced a significant decline, failing to rise beyond the resistance level of 0.6220. The market structure now displays a bearish wedge, with the price reaching the demand level of 0.6050 on the daily chart.

NZDUSD Key Levels

• Demand Levels: 0.6050, 0.5990, 0.5770
• Supply Levels: 0.6220, 0.6290, 0.6360

NZDUSD Long-Term Trend: Bearish

The supply zone at 0.6220 has successfully resisted price ascent four times this year, indicating strong bearish defense at this level. In June, two failed attempts to break above this level resulted in the formation of a double top, preceding a bearish market structure.

The price has now descended to the demand level of 0.6050, which includes a bullish order block. This test of the demand zone presents an opportunity for buyers to regain dominance. Currently, market participants are almost equally balanced, as indicated by the Hull Butterfly Indicator lying at zero.

NZDUSD Short-Term Trend: Bearish

On lower timeframes, sellers dominate, as evidenced by the formation of three black crows, driving the price to the demand level of 0.6050. Both the Moving Average and the Hull Butterfly Indicator signal a strong downward trend on the 4-hour chart. Observing for a Change of Character (CHoCH) on the lower timeframe is crucial to determine if a reversal may occur. This would help generate more the best Forex signals.

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