The NZDUSD market recently formed a head and shoulders pattern after encountering a strong bearish breaker block at 0.61070. Consequently, the resistance at this level has forced a downward reversal, pushing the price back toward the key support zone at 0.58520.
Earlier, the market witnessed a sharp bullish surge after testing the demand level at 0.55120, resulting in an impressive 10% gain in a single upward displacement. However, following this strong move, price action has slowed significantly, with choppy fluctuations and clustered candles dominating the trend. Eventually, this consolidation led the pair to climb toward 0.61070.
Upon reaching this level, the price faced strong rejection, triggering a swift reversal back to the 0.58520 support. Notably, this level was tested with a single daily candle while the Stochastic indicator flashed oversold conditions. Immediately afterwards, the market responded with a decisive bounce, reinforcing the significance of this support zone.
NZDUSD Short-Term Trend: Bullish
In the lower timeframes, the pair currently exhibits a bullish bias, primarily due to the higher timeframe rebound from 0.58520. This recovery suggests that the market remains within a broader consolidation phase, potentially setting the stage for another upward push in the near term.
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NZDUSD Short-Term Trend: Bullish
NZDUSD Short-Term Trend: Bullish
