NZDUSD sellers crash the market into the final wave as they head towards a demand zone. The market’s bearishness began on the 5th of April, 2022, a few weeks after the market was rejected to the upside at the previous support of 0.6470 on the 28th of January, 2022. Currently, the market’s bearishness is in its final wave before a corrective wave occurs to the upside.
The market has been bearish since early April 2022. The first motive wave appears to be the most elongated as NZDUSD sank deep into an oversold region, as indicated by the Relative Strength Index (RSI) indicator. The market remained in this oversold region until the previous support at 0.6230 was hit. The rejection at this major level bounced the price to the upside into the close level of the previous daily bullish candle that was formed on the 4th of May, 2022 at 0.65440.
On the 14th of June, 2022, the previous support at 0.6230 bounced the price to the upside again, but the bears succeeded in breaking the level into the demand level at 0.6070 a month later. A rejection at the demand level of 0.6070 drove the price to the upside until the supply level at 0.6470 was reached. The current motive wave, which is likely the last impulsive wave, is projected to either end at the 0.6070 level or the 0.5760 support level.
NZDUSD Short Term Trend: Bearish
The current market’s overall trend is bearish on the four-hour time frame. This bearishness began on the 12th of August, 2022. The market is expected to keep sinking down into the demand zone at 0.5760 as long as the high of the candle formed on the 30th of August, 2022 at 0.61940 is not broken to the upside. Should the high price level be broken upward, NZDUSD might just continue upward till the liquidity above the double top is swept off.
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