NZDUSD Anticipates Bullish Pullback

Market Analysis: NZDUSD Experiences A Bearish Market Structure Shift

The NZDUSD currency pair recently underwent a significant bearish break of structure, signaling the continuation of its prolonged downtrend. Early in November 2023, the pair’s price action established a notable low, which triggered a brief bullish correction. This movement marginally breached the $0.62720 supply level before reversing sharply into a bearish trend. Since then, the price has fluctuated between upward and downward movements, lacking a definitive direction.

NZDUSD Significant Zones

Resistance Levels: 0.60260, 0.62720
Support Levels: 0.57400, 0.55370

By early December 2024, the price action on the daily timeframe confirmed a clear bearish structure break, solidifying the overall downtrend. This bearish sentiment is reinforced by the daily Moving Average indicator, as the price continues to trade below this level, sustaining downward momentum.

On the 4-hour timeframe, the market offers a more detailed view of recent developments. A confirmed bearish break of structure has activated a 4-hour order block. Following this, the pair exhibited a bearish reaction, with the formation of bearish candlesticks further affirming this directional bias.

Although the prevailing trend remains bearish, the Relative Strength Index (RSI) on the daily chart indicates that the price has entered oversold territory. This suggests a potential for a short-term bullish retracement. However, such a move would likely be corrective rather than signaling a reversal of the dominant bearish trend.

Market Expectation

On the 4-hour timeframe, a breach of the immediate high could validate the anticipated bullish retracement. Traders are advised to remain cautious and monitor key resistance levels closely, as any upward movement is expected to be temporary due to the strong bearish structure on higher timeframes. By leveraging forex signals, market participants can navigate these conditions more effectively.

Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not for your investing results.