NZDUSD Reaches the 0.650 Supply Zone

Market Analysis: January 23

NZDUSD has reached the supply level of 0.650, where it paused for a pullback in December. The New Zealand dollar is rising in value against the US dollar in the market.

NZDUSD Key Zone

Demand Level: 0.620, 0.600, 0.560
Supply Level: 0.650, 0.660, 0.680

NZDUSD has resumed the uptrend after its pullback to 0.620. The market had been ascending since October of the previous year. The bulls appeared to be exhausted at 0.650 after about four months of unrivalled bullishness in the market. The market turned bullish in October when the Stochastic indicated that the market was oversold. The daily candles shifted to rest above the Moving Average of the Bollinger Band.

A retracement occurred at the 0.650 supply level. The market appeared to pull back from the supply zone to gather good momentum from the demand level at 0.620. The buyers aren’t showing any signs of weakness.

NZDUSD Short-term Trend

The Stochastic on the 4-hour chart shows the market is well overbought, just as the Stochastic signifies on the daily chart. A retracement against the market direction is likely to play out before a bullish impulsive displacement, The buyers are likely to push the price to the next supply level at 0.650.

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