The NZDUSD currency pair continues to maintain a distinctly bearish trajectory, a trend that has persisted since the outset of the year. The bears have firmly asserted dominance over the market, leveraging the formidable resistance barrier at 0.6390 to fortify their position. The definitive shift towards bearish sentiment was underscored by the breach of a crucial supporting trendline back in January, further cementing the downward trajectory.
The emergence of a bearish order block after the breach of the price below the bullish trendline provided ample opportunity for sellers to assert themselves aggressively. Further validating the bearish sentiment, a discernible double-top pattern materialized, facilitated by a retracement to fill voids of inefficiency within the market. Ultimately, this led to the attainment of the critical demand level of 0.5860, punctuated by the presence of three consecutive black crows.
In April, a retracement to the neckline of the aforementioned double-top pattern was observed. This gave sellers yet another opportunity to assert control and initiate a downward trajectory. The result was obvious, as the price declined rapidly to the demand level of 0.5860.
NZDUSD Short-term Trend: Bearish
The ongoing assault on the demand level of 0.5860 signifies the continued dominance of bearish sentiment within the market. Concurrently, the Moving Averages (Periods 9 and 21) are positioned above the daily and 4-hour candles. This reinforces the prevailing bearish stance. As such, market indicators suggest an impending downturn. Speculators expect a further decline to 0.5770 upon the breach of the current demand level. This would help to establish a safe setup for the best forex signals.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy
