NZDUSD Bearish Streak Prolongs

NZDUSD remains firmly in a bearish phase, extending its downward momentum. The market has now recorded six consecutive days of lower closes, indicating sustained selling pressure. Bears continue to dominate price action, maintaining firm control over the pair’s short- and medium-term direction.

Demand Levels: 0.57160, 0.55850, 0.55010

Supply Levels: 0.59960, 0.61120, 0.63360

The head and shoulders pattern that completed in August marked a decisive turning point for NZDUSD. This reversal was further validated by the bearish crossover of the 20 and 80-period moving averages, signaling a confirmed shift in long-term market direction.

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Recently, price action established a swing low within the broader bearish market structure as it retested the supporting trendline of the falling wedge. This move prompted a temporary corrective rally—an expected pullback within the dominant downtrend. The retracement phase showed a mix of bullish and bearish sessions, contrasting sharply with the renewed bearish continuation that has since followed, characterized by consecutive down days and stronger bearish momentum.

On the lower timeframe, NZDUSD advanced earlier through a bullish trendline, which served as the main guide for the temporary recovery. However, upon testing the upper resistance boundary of the wedge, bullish momentum waned. The subsequent break of the ascending trendline confirmed the continuation of the primary bearish trend.

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The emergence of the three black (falling) soldiers pattern further underscores the growing strength of bearish sentiment. With consistent lower highs and lower lows, price action is now steering toward the lower boundary of the wedge, where further bearish continuation or a potential reaction could occur.