NZDUSD Rally Projects Into The $0.64100 Supply Zone

NZDUSD Analysis – January 14

NZDUSD rally projects into the $0.64100 supply zone. The Stochastic Oscillator indicated a shift in the market, with NZDUSD moving from the discount zone to the premium zone. This led to a buy-side liquidity grab and a massive crash in July 2023. Despite the consolidation at $0.62300, the market’s uptrend is expected to continue until the price enters the $0.64100 supply zone.

NZDUSD Key Levels

Demand Zones: $0.60600, $0.57700
Supply Zones: $0.64100, $0.65400

NZDUSD Long-Term Trend: Bearish

The buy-side liquidity grab at $0.63850 led to a massive crash in July 2023. The buy-side liquidity grab actually occurred after several invalidations of previous highs until the price hit $0.64100. The market was pushed upward before the massive crash due to the buying pressure from the diagonal support. On August 2, 2023, NZDUSD continued further to the downside, invalidating the diagonal support in the process. The invalidation led to a breakout against the bulls as prices kept forming lower lows into the discount zone.

Eventually, the bulls seized control of the market. This happened after the oversold indication by the Stochastic Oscillator in late October 2023. A market structure shift occurred, confirming the presence of the bulls in the market. The price flipped in a few days from the discount zone to the premium zone. The overall order flow of NZDUSD is still bearish despite the reaction of the price at the FVG (Fair Value Gap) in the premium zone. The market’s uptrend is likely to continue until the price enters the $0.64100 supply zone.

NZDUSD Short-Term Trend: Bullish

The market experienced a breakout from the premium zone on the four-hour chart into a consolidation phase as the year 2024 began. According to the Stochastic Oscillator, NZDUSD is overbought. A crash into the 79.0% retracement level is expected before the bullish trend resumes.

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