Market Analysis: NZDUSD Signals Potential Shift in Market Sentiment
NZDUSD recent market developments indicate a notable shift in sentiment as the pair transitions from a bullish to a bearish trend. After a prolonged bullish run from the 0.58650 level, where the price consistently formed higher highs and higher lows, momentum faded in late September 2024. At this peak, a significant low was established, marking the beginning of the new bearish trend.
NZDUSD Significant Zones
Resistance Levels: 0.63020, 0.61440
Support Levels: 0.59860, 0.58650 
The bearish trend has been aggressive, with the price breaking below the 0.61440 level. This confirmed a bearish market structure, marked by large bearish candles with minimal retracements, indicating strong selling pressure. The absence of significant pullbacks further emphasizes the intensity of the bearish momentum. Following this break, an important order block was activated on the 4-hour chart, reinforcing the bearish outlook.
As the NZDUSD market continues to decline, the bearish trend appears to strengthen, suggesting a sustained downtrend in the near term. Technical indicators also align with this bearish sentiment. The daily Relative Strength Index (RSI) shows a noticeable drop in price strength, signaling the weakening of bullish momentum. Additionally, the daily Moving Average (MA) supports the bearish trend, with the price well below the indicator, indicating continued downward pressure.
Looking ahead, the price is likely to move further toward the key support level at 0.59860. If the price breaks below this level, it may signal a continuation of the bearish trend, potentially leading to further declines. However, if the 0.59860 level holds, there is a possibility of a bullish reversal, which could prompt a recovery in the pair.
Market Expectation
NZDUSD has clearly shifted from bullish to bearish, with the break of market structure and technical indicators pointing to further downside potential. The key level of 0.59860 will be crucial in determining the next phase of price action. Traders should monitor for any potential reversals or further declines, as forex signals suggest careful attention to these movements.
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