Market Analysis: Market Experiences Intense Bearish Momentum Dominance
NZDUSD (New Zealand Dollar) against the US Dollar (USD) exhibited a robust bullish trend beginning in early May 2024, ascending from a baseline of 0.58800. This uptrend continued into mid-June 2024, with the pair reaching a peak of 0.62200.
NZDUSD Significant Zones
Resistance Levels: 0.62200, 0.61020
Support Levels: 0.59950, 0.58800
After reaching the 0.62200 peak, the NZDUSD market showed a subsequent pullback towards the trend line support as a healthy retracement, a common occurrence in sustained bullish markets. However, NZDUSD disappointed bullish expectations by reversing the trend entirely, transitioning into a bearish stance.
Some resistance was encountered as the price ranged a bit at the 0.61020 level, which, once broken, accelerated the bearish momentum. This downward movement was further exacerbated when the pair plunged through the key support level at 0.59950. Currently, NZDUSD is trading significantly below the Moving Average, which traditionally signals a strong bearish trend. The bearish sentiment is so pronounced that the market is not exhibiting any immediate signs of abatement, with the downtrend targeting the previous major support level of 0.58800.
Market Expectation
The market indicates that not only will the 0.58800 support level be tested, but there is also a strong possibility that it will be broken, setting a new major low since the early bullish trend in May 2024. Nevertheless, beyond this potential new low, market sentiment suggests that we may see the emergence of bullish patterns once again. This situation offers traders potential opportunities to utilize forex signals for better market entry and exit points.
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