NZDUSD is currently undergoing a correction phase. The bullish reversal began with a sharp impulsive movement that surged above the key level of 0.58540. However, following this rapid upward displacement, the market has transitioned into a corrective phase, reflecting a shift in momentum.
Last year, NZDUSD concluded with a pronounced bearish trend. The price declined sharply, finding strong support at the 0.55400 demand level. From that point, the market began to consolidate. A new cycle of impulsive and corrective movement was initiated in April when the price rallied and broke through the 0.58540 resistance.
However, the impulsive rally was short-lived. Within the same month, a double top formation emerged, effectively halting the bullish momentum. Since then, the market has remained in a tight range. Price action continues to oscillate within the boundaries of the Bollinger Bands, reinforcing the consolidation.
NZDUSD Short-term Trend: Ranging
On the daily chart, a pennant pattern has developed, signaling indecision in the short term. Inside the pennant, the 4-hour chart reveals brief directional bursts. Currently, the price is approaching the support trendline of the pennant structure. Additionally, the Stochastic indicator on the 4-hour timeframe is already in the oversold region.
A breakout—either impulsively above the 0.61060 resistance or below the 0.58500 support—will provide clearer direction for NZDUSD’s next major move to generate accurate forex signals.
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NZDUSD Short-term Trend: Ranging
NZDUSD Short-term Trend: Ranging
