NZDUSD MARKET ANALYSIS

 Good evening traders, it's quite a chilly evening and I hope you're all warm and locked in the markets as they have started the week with tremendous moves especially after yesterday's CPI news release and today's PPI report release. Into the markets today, I'm looking at NZDUSD where price rallied from a key H1 & H4 demand zone at 0.58900 & 0.58657, rallying 180 pips to the key H1 & H4 supply zone at 0.60474 & 0.60283 which is the origin of the previous drop to the H1 & H4 demand and the major H4 demand zone at 0.57985 & 0.57794. Price has filled the major H4 range from the H1 & H4 demand to the previous H1 high at 0.60000 and back to the major H1 & H4 supply zone. Price rallied into the key H1 & H4 supply zone and formed rejections with candle closes inside supply followed by a drop in a H4 bearish engulfing candle with candle closes below supply. Took sell positions during NY session at 0.60480 with SL at 0.60780. Setup taken is a rally base drop, a reversal setup and my target is at 0.59000.

Price formed rejections on H4 with candle closes below supply followed by a drop in a constant push away from supply. Price dropped 30 pips to 0.60080 then retraced to retest supply at 0.60280 before a continuation of the drop. Price gained more momentum during Asian session dropping 70 pips to 0.59750 forming a lower low and confirming a shift in market structure to bearish. Price dropped 100 pips forming a lower low to the next H4 low at 0.59450. Price then retraced to retest 0.59950 which is the previous H1 & H4 low and left a strong H4 rejection with candle close below the low at 0.59745 showing a potential continuation of the drop.