The NZDUSD currency pair has broken through the long-term support level of 0.5860, triggering a significant price drop to the next support level at 0.5550. This move was followed by a brief pullback, which retested the previously broken support level of 0.5860. However, sellers quickly regained control, driving the price down to 0.5550 in a single, decisive move.
The bearish trend in the NZDUSD pair began in October, following the formation of a swing high at the 0.6360 resistance zone. This marked a turning point in the market, with sellers gaining the upper hand.
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The short-term price decline has been characterized by a strong downward trend. The Average Directional Index (ADX) rose significantly from October to December, indicating a growing trend. However, upon reaching the support level of 0.5560, the market transitioned into a correction phase.
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This correction phase, which began in January, persisted until April and formed a bullish channel. Nevertheless, the retest of the broken support level at 0.5860 led to
resistance, ultimately resulting in a price crash.
NZDUSD Short-term Trend: Bearish
The bearish breakout from the bullish channel was marked by aggressive selling. A large bearish candle highlighted the wide range of trades in a single day, causing the Average True Range (ATR) indicator to rise. This indicates an increase in market volatility. The price has currently reached 0.5560, and we anticipate a further decline to the next support level at 0.5470.
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NZDUSD Short-term Trend: Bearish
