NZDUSD Trends Bearish

Market Analysis: NZDUSD Undergoes Bearish Reversal

The NZDUSD market recently experienced a significant bearish reversal as it approached the 0.63650 supply level, signaling a shift in market momentum. Previously, the pair demonstrated a strong bullish trend starting in late August 2024, where price established a major low and continued with a series of higher highs and higher lows. However, this bullish trend encountered resistance at the 0.63650 level, where selling pressure increased, resulting in a bearish downturn that eventually breached the upward trend line.

NZDUSD Significant Zones

Resistance Levels: 0.62210, 0.63650
Support Levels: 0.60150, 0.58480

After breaking the trendline, the NZDUSD market showed intense bearish momentum, moving quickly downward without even a minor retest of the broken trendline. As the price approached the 0.60150 demand level, the strength of this bearish movement began to fade, and slight bullish pullbacks emerged. However, despite this hesitation, the 0.60150 demand level was breached, confirming continued bearish sentiment in the market. In the 4-hour timeframe, a recent bearish break of structure was observed, followed by a retest of the bearish breaker block, contributing to the ongoing bearish leg in the market.

Technical indicators support this bearish outlook. The daily Moving Average signals a bearish trend, with price remaining below the indicator, while the daily Relative Strength Index (RSI) shows a continued decline as it approaches the oversold region. On the 4-hour chart, both the RSI and Moving Average indicate bearish conditions, with the NZDUSD price positioned below the MA and the RSI trending downward.

Market Expectation

With the recent retest of the 0.60150 level, a continuation of the bearish movement seems probable. However, caution is recommended as the daily RSI approaches the oversold region. This may signal a potential reversal, suggesting that a bullish trend could emerge if oversold conditions attract buyers back into the market. Such insights, along with forex signals, highlight critical points for traders watching potential trend shifts.

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.