NZD/USD Bulls Claim 0.5800 For a Support

Market Analysis – December 14
The NZD/USD market extended its bullish move this week, with price advancing from the 0.5700 level to around 0.5800. The pair closed the week near this level, reflecting sustained upward momentum.

The New Zealand dollar strengthened against the US dollar primarily due to a slight deterioration in US economic conditions. In particular, US weekly jobless claims rose to 236,000, significantly above market expectations of 220,000 and higher than the previous week’s 192,000. This increase highlights a growing trend in jobless claims in the United States, which has weighed on the US dollar and provided support for the New Zealand dollar.

NZD/USD Key Levels

Demand Levels: 0.58500, 0.5900, 0.59500
Supply Levels: 0.57500, 0.5700, 0.56500

NZD/USD Caught in a Demand–Supply Standoff at 0.5800

Although the New Zealand dollar’s recent strength against the US dollar is notable, technical indicators suggest a different outlook. Based on the indicators—particularly the Bollinger Bands—the market appears to be primed for a correction. The bands have expanded significantly in response to strong bullish activity, signaling heightened volatility.

Additionally, the appearance of a doji candlestick near the peak of the recent upswing suggests bullish exhaustion and a potential shift in momentum. The bullish position around the 0.5800 level is now under pressure, and if bulls fail to defend this area, the market could pull back toward the 0.5700 support zone.

NZD/USD Short-Term Trend: Market Indecision

The bullish run becomes more pronounced on the smaller timeframe, specifically the 4-hour chart. After the market reached a high near the 0.5830 level, price action shifted into a downward correction, pulling back toward the 0.5800 support zone.

The indicators used in this analysis suggest that the market is currently moving in a state of equilibrium, reflecting a balance between bullish and bearish forces. As a result, the market may break out in either direction—upward or downward—depending on which side gains control.

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