NZDUSD Reacts at a Major Demand Level

Market Analysis – February 6

NZDUSD has reacted off a confluence zone of 0.6530. The Bears utilized the opportunity to short the market at the test of the bearish trendline.

NZDUSD Key Levels:

Supply Levels: 0.6530, 0.6960, 0.7200
Demand Levels: 0.6140, 0.5750, 0.5510

NZDUSD Long-term Trend: Bearish

The market turned bullish in September after testing the support level of 0.5510. The Stochastic indicator revealed the market was oversold on the daily chart. The bullish displacement formed a steep slope to attack 0.6530. The 0.6530 supply level formed a confluence with the bearish trendline. The Stochastic indicator was overbought at the test of the confluence region. This fostered a bearish displacement in January.

An unmitigated bearish order block hangs in the confluence region. The price has declined to the support level of 0.6140. A major trend has not formed in 2023. The ADX (Average Directional Index) reveals the weakness of the trend. The Stochastic is currently oversold. The market is likely to return to order block (RTO) at 0.6530.

NZDUSD Short-term Trend: Bullish

NZDUSD has experienced a bullish structural shift in the 4-hour time frame. The bearish trendline leading to the 0.6140 support has been broken. A retest of the trendline is expected to shoot the price to the daily order block at 0.6530.

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