NZD/USD Technical Analysis | Smart Money Perspective🧠 NZD/USD Technical Analysis | Smart Money Perspective
On the current NZD/USD chart, price is trading around 0.5960, positioned between a clearly defined resistance zone (0.6130–0.6150) and a support zone (0.5890–0.5900).
We can observe the following key technical elements:
🔹 1. Liquidity Sweep
Price recently broke below the previous swing low near 0.5900, tapping into a pool of sell-side liquidity. This movement is commonly interpreted as a liquidity grab, where institutions manipulate price to trigger retail stop losses before reversing.
🔹 2. Double Bottom Formation
The chart indicates a potential double bottom forming at the support level — a classic accumulation signal. This pattern suggests buyers may be stepping in after liquidity has been taken out, anticipating a reversal.
🔹 3. Fair Value Gap (FVG)
An FVG (imbalance) is visible in the range of 0.5985 to 0.6015. This inefficiency was created by a sharp bearish move, leaving price action unbalanced. Price is now expected to retrace into this area to rebalance orders — a common smart money behavior.
🔹 4. Market Structure Outlook
If the double bottom confirms with a bullish break of structure above 0.5980, we could expect a continuation toward:
First Target: FVG zone around 0.6015
Second Target: Major resistance near 0.6150, where past distribution occurred.
✅ Conclusion
This setup combines key smart money concepts:
Liquidity grab below support
Accumulation phase at demand
FVG as target
Potential bullish market structure shift
Traders should monitor price action around the support zone for confirmation (e.g., bullish engulfing or break of short-term highs) before entering long positions. Targets remain at the FVG and resistance zones, but risk management is essential in case of a deeper sweep or macroeconomic catalyst.
