Market Analysis: NZDUSD Experiences a Bearish Market Structure Shift
The NZDUSD currency pair has undergone a significant market structure shift following a major high of 0.63680 in early October 2024. This peak marked the conclusion of a bullish trend and initiated a bearish price movement characterized by successive lower lows. The bearish momentum has been reinforced by the daily Moving Average, which indicates a sustained downtrend as the price continues to trade below this indicator.
NZDUSD Significant Zones
Resistance Levels: 0.59210, 0.61400
Support Levels: 0.57580, 0.56080 
At the critical 0.57580 demand level, the pair experienced a strong bearish breakout, with a sharp downward move breaching this zone. This action has further intensified bearish sentiment in the market. As the price approaches the next significant demand zone at 0.56080, the daily RSI highlights oversold conditions, suggesting the potential for a temporary bullish pullback.
On the 4-hour timeframe, a bullish pullback has emerged, characterized by a consolidation phase. This phase reflects market indecision as buyers attempt a temporary recovery. The 4-hour RSI shows increasing momentum, supporting the possibility of an ongoing short-term bullish correction.
Market Expectation
Despite the current bullish pullback, the overall market sentiment remains bearish. The consolidation phase is anticipated to resolve with a downside breakout. A breach below the 0.56080 demand level would likely confirm the continuation of the bearish trend, in alignment with the broader market structure and forex signals suggesting persistent downward pressure.
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