Market Analysis: NZDUSD Expects a Bearish Continuation
The NZDUSD currency pair has recently experienced a significant shift in momentum. After a bullish trend that lasted from early August 2024 to late September 2024, the bullish structure has definitively broken down. This resulted in a breach of the bullish trendline, and the price action now clearly indicates a bearish decline. The drop in NZDUSD has led the pair to recover two key supply levels at 0.62900 and 0.61000, with no evident signs of a bullish reversal or even a pullback at this stage. As the price reached the 0.61000 level, it activated a daily order block and subsequently retested the area, confirming strong bearish sentiment and signaling the potential for further downside movement.
NZDUSD Significant Zones
Resistance Levels: 0.61000, 0.62900
Support Levels: 0.59720, 0.58630
On the 4-hour timeframe, the market structure is distinctly bearish, with a series of lower lows being formed. This pattern often suggests continued bearish momentum. In support of this, the 4-hour Moving Average (MA) also indicates a downtrend, as the price remains well below the MA, further reinforcing the likelihood of a prolonged decline.
The daily Moving Average paints a similar picture, with the price continuing to trade significantly below the indicator, supporting the bearish outlook. Additionally, the Relative Strength Index (RSI) on the daily timeframe shows a notable drop in price strength, signaling weakening bullish momentum and aligning with the prevailing bearish trend.
Market Expectation
Looking ahead, the price action is expected to remain bearish, with the next key support level at 0.59630 likely to be tested in the near future. A break below this level could pave the way for further declines, especially if the market triggers the 4-hour order block, which could add additional selling pressure. Traders can monitor forex signals to capitalize on this anticipated continuation of the bearish trend.
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