NZDUSD Strikes Two-Year Low

Market Analysis – December 24

NZDUSD has plunged to its lowest level in two years, marking a significant milestone in the ongoing bearish trend. The pair’s price action exhibited a dramatic move, drilling down to the 0.56100 level. This sharp decline was characterized by a notable price displacement, with over 2% of its value lost within a single trading day. Such a substantial drop highlights the strong selling pressure currently dominating the market.

NZDUSD Key Levels

Demand Levels: 0.56100, 0.55100, 0.5000
Supply Levels: 0.57740, 0.58840, 0.60710

NZDUSD Long-Term Trend: Bearish

NZDUSD has remained firmly bearish since mid-September. The steep slope of the bearish trendline highlights the dominance of sellers. Recently, the pair dropped sharply, losing over 2% in a single day, to test the key demand level at 0.56100.

Since October, the Elder Ray Bull and Bear Power Indicator has consistently signaled negative values, reaffirming bearish dominance. At the liquidity-rich supply zone of 0.58840, a double top pattern emerged, accelerating the downward momentum.

The Smoothed Heikin Ashi candles have effectively filtered out pullback noise throughout the downtrend, clearly reflecting the strength of bearish pressure. The price’s rapid decline to 0.56100 underscores the overwhelming selling activity in the market.

NZDUSD Short-Term Trend: Bearish

On lower timeframes, a brief correction follows the recent impulsive dip. The descent appears to have temporarily paused around 0.56110, signaling potential consolidation. However, the next target lies at the swing low of 0.55100, formed in October 2021, indicating a continuation of the bearish trend if selling pressure persists.

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