NZDUSD Respects the Bearish Trendline

Market Analysis – February 26

NZDUSD has turned bearish on the daily timeframe. The third test of the downward trendline has fostered a selloff in the market.

NZDUSD Key Zones

Demand Zones: 0.620, 0.590, 0.560
Supply Zones: 0.650, 0.670, 0.700

NZDUSD Long-term Trend: Bearish

Last year, the NZDUSD market experienced its first major break of structure (BOS) on the 26th of April. A bearish trendline was anchored at the supply level of 0.700. The Bears stormed the market when the Stochastic was overbought. The bearish trend was weak between May and August. The second major break of structure (BOS) occurred on August 29th. The market dived straight to 0.560.

In October, a shift in market structure was experienced. A change of character (ChoCH) was obvious after the test of the support zone of 0.560. The price took off to attack the supply level of 0.640. The buyers experienced difficulty breaking the resistance level. The market consolidated until the daily candles tested the bearish trendline on the daily chart.

NZDUSD Short-term Trend: Bearish

A bearish reversal played out successfully after the test of the bearish trendline. The test of the bearish trendline pulled the market from the overbought level. An unmitigated order block rests at 0.650. The stochastic is oversold. A retracement back to the bullish order block is currently anticipated for a continuation of the downtrend.

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