Market Analysis: NZDUSD Bearish Momentum Breaks Through key support
The NZDUSD pair has been firmly entrenched in a bearish trend since its reversal from the 0.63390 level. Over this period, the pair has consistently broken multiple demand levels, highlighting the dominance of sellers in the market. The critical support at 0.58560, which had previously held firm through multiple retests, has now been decisively breached. This significant break signals the potential for an acceleration in the bearish momentum.
NZDUSD Significant Zones
Resistance Levels: 0.59930, 0.61360
Support Levels: 0.58560, 0.57640
A closer examination of the 4-hour timeframe reveals additional bearish confirmations. Following the breach of the 0.58560 support, the price structure continues to exhibit lower highs and lower lows, reinforcing sellers’ control. The recent bearish break of structure emphasizes the prevailing dominance of sellers, with no immediate indications of a reversal.
On both the daily and 4-hour charts, moving averages further validate the bearish outlook. The price remains well below key moving averages, underscoring sustained downward pressure. This alignment between price action and technical indicators solidifies the bearish sentiment in the market.
Market Expectation
The next key target for NZDUSD is 0.57640, where sellers are likely to test their strength further. Any bullish movements in the short term are expected to represent retracements within the broader bearish trend rather than a genuine reversal. By leveraging forex signals, traders can stay informed and adopt a cautious approach to potential corrective rallies, maintaining focus on the prevailing bearish momentum.
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