Market Analysis: NZDUSD Consolidates as Price Tests Significant Support
The NZDUSD currency pair has lacked a clear directional trend on higher timeframes since early 2024. The price has oscillated between bullish and bearish phases, remaining within a range defined by a key supply level at 0.63630 and a significant demand level at 0.58530. Bearish momentum has been more dominant, particularly from mid-September 2024, when the pair reversed from the 0.63630 resistance and descended to test the 0.58530 support zone.
NZDUSD Significant Zones
Resistance Levels: 0.62020, 0.63630
Support Levels: 0.60170, 0.58530
The 0.58530 level has historically served as a critical support zone, often halting bearish advances and initiating bullish reversals. Current price behavior suggests a similar scenario may unfold, as the level continues to hold firm against repeated bearish attempts. The daily Relative Strength Index (RSI) reflects increasing momentum, indicating a possible buildup for a bullish trend.
However, on the 4-hour timeframe, bullish momentum remains limited, with the price repeatedly testing the 0.58530 support without a decisive breakout. No definitive signs of bullish interest have emerged, signaling the need for further confirmation before adopting a directional stance.
Market Expectation
Caution is advised until stronger evidence of a bullish reversal materializes. A confirmed daily and 4-hour close above their respective Moving Averages would signal a shift in momentum, suggesting the start of an upward trend. Monitoring forex signals could also provide additional insights into potential market movements.
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