NZDUSD Sustains Bearish Structure

The NZDUSD market is once again approaching a bearish continuation after retesting a decisive mitigation block. Although the pair experienced a notable bullish pullback earlier, the rejection from this block quickly restored downward pressure. Consequently, the test of this zone remains a significant barrier to any additional recovery attempts.

Demand Levels: 0.56250, 0.55400, 0.50010

Supply Levels: 0.58560, 0.60870, 0.63510

Earlier in the year, NZDUSD dropped sharply into the bullish breaker block at 0.58560 after forming a head and shoulders pattern in July. The block initially triggered a strong repulsive bounce, which allowed the Smoothened Heikin Ashi candles to switch bullish. However, sellers later regained control, turning the candles red and forcing the price to dig through the breaker block once again.

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During April’s ascent, Fair Value Gaps emerged and created inefficient areas. Price has since retraced to fill those inefficiencies around 0.56260, and the Stochastic confirmed an oversold condition. Although the correction was expected, the pair now faces a strong opposing block that continues to resist price advancement.

On the 4-hour timeframe, price appears overbought, aligning with the daily mitigation block test. The Smoothened Heikin Ashi candles are merging with custom candles and are preparing for a directional shift. Therefore, a lower-timeframe structural break may provide clearer NZDUSD forex signals for continued short-side opportunities.