NZDUSD Pulls Back from Resistance Zone

Market Analysis -July 18

NZDUSD is currently undergoing a pullback from the resistance level of 0.6390, following a bullish trend that began after a bearish failure swing in early June. This shift in market structure established a favourable bullish trend, with the price surging out of the oversold region.

NZDUSD Key Levels

Demand Levels: 0.6180, 0.6080, 0.5980
Supply Levels: 0.6320, 0.6390, 0.6440

NZDUSD Long-Term Trend: Bullish

During late June, a pullback to the demand level of 0.6080 occurred, coinciding with the Stochastic being oversold. This led to the continuation of the bullish trend, further confirming the positive market sentiment. Notably, a bullish break of the structure was established with a long bullish candle on the 12th of July.

However, it’s worth noting that the price is currently overbought on the daily chart, signalling the possibility of a price decline in the near future.

NZDUSD Long-Term Trend: Bearish

On the 4-hour chart, the Stochastic is currently oversold, indicating a potential short-term reversal. To ensure an optimal trade entry, it is essential to wait for the alignment of higher timeframes with the lower timeframe before executing any trades. This approach will help traders make well-informed decisions and maximize their trading opportunities.

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