Market Analysis: NZDUSD Maintains Dominant Bearish Trend
NZDUSD has faced substantial bearish pressure since reaching a notable high in early 2023. After briefly breaking through the 0.63880 resistance level, the pair reversed direction, initiating a sustained downtrend that has pierced several demand zones.
NZDUSD Significant Zones
Resistance Levels: 0.61490, 0.63880
Support Levels: 0.59470, 0.57630 
The initial major demand zone at 0.59470 was breached, marking a critical turning point in the pair’s bearish trajectory. This breakdown paved the way for lower price levels, despite occasional bullish retracements that attempted to counteract the downward momentum. Each retracement faced renewed selling pressure, further solidifying the bearish trend.
Recently, the pair decisively broke below the 0.57630 level, accompanied by a surge in bearish momentum. This move positions NZDUSD on a path toward the next critical support at 0.55100. The bearish outlook is reinforced by the daily moving average, which consistently shows prices trading below the indicator, providing a clear bearish signal.
Market Expectation
Despite the pronounced downward momentum, the Relative Strength Index (RSI) suggests a potential short-term bullish retracement. Both daily and 4-hour RSI readings indicate that the pair is in oversold territory. This condition may trigger a corrective move, with prices potentially retracing to retest the recently breached 0.57630 level before continuing their descent toward 0.55100. Forex signals align with this analysis, highlighting opportunities for traders to monitor these levels closely.
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.
Leave a Reply