NZDUSD Bears Maintain Control Within Descending Channel

The New Zealand Dollar remains under pressure against the US Dollar, with price action confined within a descending channel. Since failing to sustain gains above the $0.6000 level in July, sellers have tightened their grip. The consistent formation of lower highs and lower lows reinforces the bearish structure and keeps downside momentum intact.

Support Levels: 0.5802, 0.5717, 0.5550
Resistance Levels: 0.6090, 0.7050, 0.7500

NZDUSD continues to illustrate a corrective bearish phase that began after topping near the $0.6090 resistance zone. The pair now trades at $0.5860, moving steadily within the descending channel. This structure reflects sustained and orderly selling pressure.

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Moreover, the price trades below the 20-period Simple Moving Average, which aligns with the midline of the Bollinger Bands. This Moving Average now acts as dynamic resistance, limiting bullish attempts and reinforcing the broader downtrend.

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The Bollinger Bands slope downward, with price action confined to the lower half. Such alignment highlights a strong bearish trend. In addition, the Money Flow Index (MFI) sits at 37.14, well below the neutral 50 line. This reading signals net outflows, confirming sellers’ dominance. Importantly, since the MFI is not yet in oversold territory, more downside remains possible.

In the short term, the pair found temporary support at the channel’s lower boundary near $0.5800. Since then, it has staged a modest corrective bounce toward $0.5860. However, the price now faces a decisive test at the middle Bollinger Band.

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A rejection at this level would strengthen bearish conviction and likely trigger another push toward the recent lows. Consequently, sellers remain well-positioned to drive the next leg lower.

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