NZDUSD Respects the Third Touch On Its Trend Line at a Critical Level
NZDUSD Market Analysis – April 11
NZDUSD respects the third touch on the trend line to continue its bearish momentum. A significant market shift was experienced on February 25th, 2021. The market peaked in the 0.7450 supply zone. There was a drop-base-drop pattern that led the market to 0.6950. The market retraced back to the base to continue the bearish move. The retracement to the base formed the second touch of the trend line on May 26th, last year.
NZDUSD Key Levels
Supply key levels: 0.7450, 0.7200
Demand key levels: 0.6950, 0.6550
NZDUSD Long Term Trend: Bearish
The demand zone at 0.6950 hindered the bearish run during July and August. The break of the demand zone formed a second touch on the lower trend line. The market rallied afterwards, breaking above 0.6950. The market made the third touch of the bearish trend line on the 10th of September. The bearish trend line acted as a supply zone for a momentary bullish trend line. The market made the second touch of the new bullish trend line, which began on the 19th of August. There was accumulation which led to distribution from the 0.6950 key level to the 0.7200 key level.
The key level of 0.7200 was reached in October when it made the second touch of a relatively higher trend line. The market slumped from the critical level and violated the key level at 0.6950. There was a false breakout at the third touch of the lowest bearish trend line since February 24th. The market found support at 0.6550. The support initiated a new trend.
NZDUSD Short Term Trend: Bearish
The critical level at 0.6550 gave support to the bulls to rise to the 0.6950 key level. The 0.6950 has switched from a demand zone to a new supply zone. A double top formed below the trend line where the third touch was made on the overall higher trend line. The moving average is currently resting above the four-hour chart and has crossed, signifying bearishness. The market is now testing the latest trend line initiated at 0.6550. The trend line has supported bullish momentum four times successfully. The critical level at 0.6950 is likely to sink the price to 0.6550.
How To Buy Lucky Block
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
Share with other traders!