NZDUSD Succumbs to Bearish Pressure

Market Analysis – October 17

The NZDUSD market recently experienced a reversal at the resistance level of 0.6111. Since then, the price action has evolved into a bearish wedge pattern, signaling persistent downward pressure. Currently, the pair continues to decline, filling regions of market inefficiency created during the aggressive bullish rally in April.

NZDUSD Key Levels

Demand Levels: 0.58210, 0.55850
Supply Levels: 0.5930, 0.61110

NZDUSD Long-Term Trend: Bearish

In July, NZDUSD encountered a major mitigation block, which triggered the formation of a head and shoulders pattern. This reversal structure shifted the overall market sentiment, confirming the establishment of a downtrend. The reversal also aligned with a test of the upper Bollinger Band resistance at 0.61110, further reinforcing bearish momentum.

As the pair continued to descend within the bearish wedge, it struck a bullish mitigation block at 0.58210, offering temporary support. This zone briefly fueled an upward push that broke the wedge structure. However, the short-lived recovery quickly collapsed as the price fell sharply in a single bearish displacement, slicing through the 0.58210 support level with renewed selling pressure.

NZDUSD Short-Term Trend: Bearish

In recent days, the price tested the lower boundary of the bearish channel, prompting a short-term bullish correction on the lower timeframe. Nevertheless, this move has now encountered resistance near the upper Bollinger Band, which is already exerting downward pressure on price action. Despite the brief retracement, NZDUSD still has room to pull back slightly higher to realign with the falling wedge formation.

At this stage, traders may generate forex signals by positioning around the extreme levels—capturing potential reversals as price action reacts sharply to these key areas. The broader market outlook, however, remains decisively bearish, with downside continuation still favored in the medium term.

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