NZDUSD Fades to New Support Level

Market Analysis – December 14

The NZDUSD pair has broken the 0.58840 support level, descending steadily to the next support at 0.57740. This decline featured a sequence of consecutive bearish candles, reflecting a strong downtrend. The market remains firmly bearish, with the potential for further price dips as sellers maintain control.

NZDUSD Key Levels

Demand Levels: 0.57740, 0.56100, 0.55100
Supply Levels: 0.58840, 0.60710, 0.62210

NZDUSD Long-Term Trend: Bearish

Since October, NZDUSD has been in a sustained bearish trend following a rejection at the 0.63850 resistance level. Multiple pullbacks during this period have been effectively filtered by Smoothed Heikin Ashi candles, consistently displaying bearish red formations above daily candles, reinforcing the trend.

In November, the Smoothed Heikin Ashi candles strengthened resistance near the 0.58840 level, enabling further price declines. Additionally, the formation of a double-top pattern at 0.58840 signaled a continuation of bearish momentum. The Awesome Oscillator confirms this sentiment, displaying increasing bearish strength.

NZDUSD Short-Term Trend: Bearish

On lower timeframes, the market recently bounced off the 0.57740 support level, showing sellers’ determination to drive prices lower. A break below this key level could present entry opportunities for forex signals on lower timeframes to align with the prevailing trend.

This persistent bearish momentum underscores the sellers’ dominance, creating a favorable environment for trend-following strategies.

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