Ahsan Raza | Independent Technical Analyst

bearish

NZDUSD-1D

forex

2026-07-03

Active

Market Conditions

NULL

REJECTION AT THE CENTRAL ZONE IN NZDUSD OR CONTINUATION HIGHER AT 1D

I observed a clear shift in market structure following a strong impulsive bearish move that originated after price failed to sustain above a previously established central zone. Price reacted sharply from this area, confirming the presence of strong selling pressure and initiating a downside expansion. Following the impulsive decline, the market transitioned into a corrective phase, where price began recovering from recent lows.During this phase, price developed a gradual ascending structure while consistently creating higher lows. This movement appears corrective rather than impulsive, suggesting that it is driven more by rebalancing and liquidity engineering rather than sustained bullish strength. The recovery toward higher prices indicates that the market is revisiting a significant technical area before determining its next directional move.Currently, price is approaching the previously established Central Zone, which acts as a key resistance area. This region is significant as it has repeatedly influenced price behavior throughout the current market structure, making it a high-probability reaction point. The approach toward this zone lacks strong impulsive conviction and appears relatively controlled, which often precedes a reaction rather than continuation.Speculative Outlook: Price is now entering a critical Central Zone, making this an important decision point for the market. If bearish candlestick patterns or rejection behavior develops within this region, it would indicate that sellers are stepping back in, potentially leading to another downside move toward lower support.There is also a possibility of a liquidity grab above the Central Zone, where price briefly breaks the resistance, captures resting buy-side liquidity, and then reverses to the downside. This scenario would further strengthen the bearish bias.However, if price manages to sustain above the Central Zone with strong impulsive bullish candles, it would invalidate the immediate bearish outlook and suggest a shift toward continuation. Until that confirmation appears, the current structure favors a bearish reaction from this key resistance zone.

NOT INVESTMENT ADVICE-RESEARCH ONLY.