NZDUSD consolidates ahead of a potential decline. NZDUSD has been observed to lurk in a consolidation phase, suggesting a buildup of selling pressure. This would likely precede a downward movement. The Fair Value Gap also serves as a price level that attracts sell orders.
The NZDUSD pair experienced a bullish trend, reaching a high of 0.63730 before a significant price drop. This led to the break of the bullish trend line and a shift from a bullish to a bearish market structure. The break of the trendline signals the beginning of a new trend. The price then entered a consolidation phase as it lacked the strength for rapid bearish movement.
The consolidation represents a buildup of sell orders, while the formation of a double-top pattern aligns with the market’s bearish sentiment. Prices are likely to fill the Fair Value Gap as the daily timeframe Moving Average indicates a shift from a bullish to a bearish outlook.
NZDUSD Short-Term Trend: Bearish
The double top pattern is evident in the 4-hour timeframe. The moving average on the 4-hour chart suggests a bearish price trend as the current price is below it. As the price approaches the 0.59900 demand level, a minor pullback is expected before breaking below the demand level and filling the fair value gap.
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NZDUSD Short-Term Trend: Bearish
