Market Analysis: NZDUSD Faces Strong Bearish Momentum as Price Reaches the 0.63680 Level
The NZDUSD currency pair has recently undergone a significant bearish decline, with the price sharply dropping from the 0.63680 level. Before this decline, the pair had been fluctuating within a range, confined between the 0.63680 resistance level and the 0.58710 support level. This extended period of consolidation, marked by price movement without breaking either boundary, indicated a lack of directional strength. However, the recent decisive downward move suggests that the consolidation phase has ended, resulting in a strong bearish reaction and establishing 0.63680 as a key resistance point.
NZDUSD Significant Zones
Resistance Levels: 0.62200, 0.63680
Support Levels: 0.60550, 0.58710 
The bearish sentiment is further supported by technical indicators on the daily chart. The Relative Strength Index (RSI) shows a continued decline in price momentum, indicating weakening bullish strength and affirming the bearish outlook. Additionally, the daily Moving Average gives a clear bearish signal, as the current price remains consistently below the indicator, reinforcing the downward trend.
A closer look at the 4-hour timeframe reveals the shift from a previously bullish phase to the current bearish dominance. This transition occurred after a critical break of a bullish trendline, leading to an aggressive bearish trend characterized by a steep price drop with minimal bullish retracements.
Market Expectation
As the NZDUSD price nears the 0.60550 demand zone, further bearish pressure is expected. A break below this level could pave the way for the pair to target the 0.58710 demand zone, a key support area. If the price falls below 0.58710, it may indicate a continuation of the bearish trend, potentially pushing the pair to new lows. On the other hand, failure to break this support level could lead to a bullish reversal, possibly reinstating the prior consolidation pattern. Using forex signals can help traders navigate these critical market levels.
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