Market Analysis – February 21
NZDUSD has failed to break the 0.6500 supply level. The bearish trendline prompted the bearish displacement at the supply level.
NZDUSD Key Levels
Supply Levels: 0.6500, 0.7000, 0.7500
Demand Levels: 0.6200, 0.5600, 0.5000
NZDUSD Long-term trend: Ranging
The significant level of 0.6550 has played multiple demand and supply roles in the market over the last year. In January 2022, the key level served as a support level to aid the ascent of 0.7000. The daily candles pressed the resistance band of the Bollinger in April. The Stochastic was equally overbought at the same time. The market purged profusely from the 0.7000 resistance level to the 0.6200 support level.
Immediately after the market dived past 0.6500, the level changed its role to serve as a resistance level. The retest of the level in June resulted in the formation of a double-top bearish reversal pattern. This caused the price to decline to 0.6200. The market’s delivery to 0.5600.
NZDUSD Short-term Trend: Bearish
The level at 0.6500 has halted the uptrend after the bullish reversal in September. The bearish trend line formed a confluence region with the 0.6500 level. From the bearish confluence, the price has returned to the lower border of the range at 0.6200. The Stochastic is currently in the oversold region on the daily timeframe and the 4-hour time frame. The market is expected to bounce back to the upper border of the resistance level at 0.6500.
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