Market Analysis: NZDUSD Undergoes Bearish Correction
The NZDUSD market recently saw a notable shift in bias as the trend moved from bearish to bullish. This change in structure became evident when the price touched the 0.62200 level, a critical support zone. After briefly dipping below this level, the price rebounded and formed a higher high, signaling further bullish strength. However, upon nearing the 0.63540 level, the market encountered a sharp bearish reaction, as seen on the daily chart. This reaction indicates the market’s struggle to break through this key resistance, causing a temporary halt in the bullish momentum.
NZDUSD Significant Zones
Resistance Levels: 0.63540, 0.64720
Support Levels: 0.62200, 0.60600 
The Relative Strength Index (RSI) on the daily timeframe also signaled a weakening market. As the price approached the overbought region, the RSI showed that bullish momentum was at its peak, followed by a slight decline, reinforcing the bearish outlook. Similarly, the 4-hour RSI reflected a drop from the overbought zone, suggesting the potential for a near-term bearish retracement.
While the price is expected to experience a short-term decline, this does not invalidate the overall bullish trend. Instead, this correction is seen as an opportunity for the market to take liquidity below, potentially activating the daily order block. This retracement could set the stage for the bullish trend to resume once the correction is complete.
Market Expectation
Although the current outlook points to a potential bearish correction, the broader trend remains bullish. The daily order block is expected to serve as a catalyst for renewed upward momentum, with the price likely to breach the 0.63540 level. Traders monitoring forex signals should stay alert for confirmation of the next upward push.
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